Bonus and Split

A

Analytics

New Member
#1
#1
Hi,
I would like to know when the company offers Bonus or Splits, what actually happens to the market value of that share..does it get traded automatically half its price( example -if bonus/split - 1 share split into 2)? OR the exchange adjusts the price?

:)
 
A

ARMHM

Active Member
#2
#2
Analytics said:
Hi,
I would like to know when the company offers Bonus or Splits, what actually happens to the market value of that share..does it get traded automatically half its price( example -if bonus/split - 1 share split into 2)? OR the exchange adjusts the price?

:)
Click to expand...
It will be traded around half the price on ex-date.
 
V

viv97in

New Member
#3
#3
it is traded at 5-10 % more than half the price, generally speaking. It if it were exactly half, then giving a bonus would not be of much use!!!
 
R

rvm123

Active Member
#5
#5
issuing of bonus shares is a way of return to the investors. a company having a good record of bonus will normally get quoted at a high price.
 
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