02 July 2008
Since the company is paying dividend out of the funds of the company. thereby reducing the networth, the market price of the company will fall and same happens will all the companies.
02 July 2008
bonus issue does not mean that co pays dividend (cheques) therefore no reduction in funds of co.only the reserves will go down & share capital increases (no funds inflow or outflow) .it is just a book adjustment. AS SOON AS THIS ANNOUNCEMENT COMES IN MKT SHARE's MARKET PRICE INCREASE
03 July 2008
Oh iam extremely sorry K. I misunderstood the question as dividend declaration. Ya as u said the price of stock should increase. The price of the stock of Rpower was increased from 360 to 430 within few days of declaration of bonus news. But the price couldnot sustain because the record date was not declared. Only the Bonus issue was declared but not the record date.
CAclubindia
