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Bonus issue

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(Querist)
10 October 2013 why does market take bonus issue usually as a favourable act and why does market price get adjusted on issue of bonus shares?
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@VaibhavJ

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@VaibhavJ (Expert)
10 October 2013 Hi

Since there is inflow of shares at nil cost. You get additional shares at free of charge but value of company remains more or less.

Thanks!

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