- This topic has 1 reply, 2 voices, and was last updated 7 months ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
Sir could you explain what is the reason behind issue of bonus issue leads to fall in share prize
You give away free shares
Scrip issue1 bonus for every 5 held …
or 1 bonus for every 1 held …..or 1 for every 4 held and so onSo more shares without raising money
Co share price proportionally adjusts to the number of bonus shares issued. “Dilution”If a company’s stock price was at $10 and it had a 1-for-1 bonus issue, the stock price would readjust to $5 to reflect the additional bonus shares.
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.