Bonus and Split on the same day?

#1
What does this corporate action mean?

AGM/BONUS1:1/FVSPLT 10TO1

Isn't it equivalent to a split of 20:1? If yes, what's the reasoning behind making it look so complicated?

Thanks.
 

asnavale

Well-Known Member
#2
What does this corporate action mean?

AGM/BONUS1:1/FVSPLT 10TO1

Isn't it equivalent to a split of 20:1? If yes, what's the reasoning behind making it look so complicated?

Thanks.
Hi Heron,

In effect it same as a split of 20:1. But in reality it is different. 1:1 bonus is distributing the profits in a way other than in cash. Face value split is for some other reasons. In FV split you don't gain anything except the number of shares multiplies.

Regards

-Anant