19 May 2008
What is the criteria for the changes in the rate of stock on bonus issue for sure the share will fall from the point of issue on excess shares floated in the market. How much does it fall? Can we estimate the fall approximately?
19 May 2008
In my opinion, if say company issues 1 bonus share for every 2 shares (assume cum-bonus price 100 each) held, theoritically the ex-bonus price should be 200/3 = 67 each. means total market value in hands of an investor should not change.
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