Need Some Information On ( BONUS/SPLIT) ?

#1
HI friends,

i have below queries about BONUS and SPLIT,

1. Which one goes first, split or bonus?
2. If a company giving bonus/split, thats means company is in good form or not ? (Please Leave RPOWER :D)
3. Which one is Long Term profitable BONUS/SPLIT/BONUS with SPLIT?
4. Recent bonus/split issues are ( L&T, JMFinancial ), any views on the same?

Thanks in advance...
bABIDASH
 

mahesh2007

Active Member
#3
1. Which one goes first, split or bonus?
2. If a company giving bonus/split, thats means company is in good form or not ? (Please Leave RPOWER )
3. Which one is Long Term profitable BONUS/SPLIT/BONUS with SPLIT?
4. Recent bonus/split issues are ( L&T, JMFinancial ), any views on the same?

(1)When stock goes simultaneously for split and bonus, then stock is split first and then on split stocks bonus is given.Ex. rajesh export
split 2:1,bonus 2:1
(2)bonus is given when companies reserve and surplus increases and the company want to convert the same into share capital.
split is done to make the stock liquid. Some unscrupulous companies with no funadamentals go for stock split/bonus to hike their share price.Beware of that.

(3)generally price is adjusted according to bonus/split.
sorry to give rpower ex,
issue price 430, after bonus(3:5) price became 268.75 per share.
Bonus is good for dividend paying comapny as u become entitled for dividend on more units.
 

Similar threads