ST Sir,
Wanted to know how profit harvesting works after bonus issue. I mean say a company is trading at 444 and I purchase 100 shares of the company at the price of 444. Now it decides to give 1:1 bonus. After due date, now I have 200 shares at price of around 222. So can I sell 100 shares at 222 and claim the loss? But then what happens to remaining 100 shares? When I want to sell them, how much profit would be considered?
Wanted to know how profit harvesting works after bonus issue. I mean say a company is trading at 444 and I purchase 100 shares of the company at the price of 444. Now it decides to give 1:1 bonus. After due date, now I have 200 shares at price of around 222. So can I sell 100 shares at 222 and claim the loss? But then what happens to remaining 100 shares? When I want to sell them, how much profit would be considered?
To answer last part in short, the purchase price of bonus share is considered 0 in accounting, hence full sale value will be the profit component.
see this http://www.traderji.com/community/threads/general-trading-chat.96368/post-1224589
search, you'll get many posts on this.
Last edited: