Bonus shares details
Bonus shares are those shares when companies listed in the stock market give shares to their existing shareholders for free, then these are called bonus share, for this the investor does not have to pay even 1 rupee, it is given absolutely free.
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Now these are issued in the ratio of 1:1 or 1:2, if you have 10 shares of a company then that company tells you that I will give you 1:1 ratio then you will have 20 shares of that company.
Yes, this does not increase the valuation of the company but the company does not have to worry about paying dividends and the outstanding shares of the company increase. As soon as this happens, the price of the company's shares falls almost to half, then even small investors are able to invest in it and this increases the liquidity of the company's shares.
Types of bonus shares
There are two types of bonus shares: fully paid bonus share and partially paid bonus share.
Fully Paid bonus shares
As the name itself suggests, the money has already been paid. Yes, these types of shares are given to the investor as per their holdings.
Partially paid bonus shares
Partially Paid Bonus Shares: These bonus share are issued from the capital reserves. It converts a part of its reserves into share capital and thus increases the total equity of the company.
Bonus shares record date
When the company selects a time and date to identify its shareholders for bonus share, this is called the record date because the market is open every day and buying and selling happens every day, hence the record date is given.
Upcoming bonus share News
To get information about upcoming shares you can get information on Moneycontrol, ET Times, NSE and BSE, Live Minutes, Business Standard, ET Money or you can get information on Pulse for free.