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Thursday, November 26, 2009

Re: [sharetrading] RIL bonus

 

In case of splitup of a share, the face value of share is reduced eg.If a share's face value is Rs.10/- and it is split in to two share then the face value will become Rs.5/-.In this case the number of shareholdings will be doubled but it doesn't affects the Reserve Fund of Company and the value of shareholding. In case of Bonus issue the Company issues additional shares in the ratio predetermined. So the number of shares increases as well as the value of shareholdings also increases. The bonus shares are issued from the Reserve fund of Company so the Book Value and price of share declines as per the ratio of bonus.


--- On Thu, 26/11/09, vsankar <mutsansar@yahoo.co.in> wrote:

From: vsankar <mutsansar@yahoo.co.in>
Subject: [sharetrading] RIL bonus
To: sharetrading@yahoogroups.com
Date: Thursday, 26 November, 2009, 6:53 PM

 
kindly clarify the difference between stock splitup and issue of bonus shares.

--- In sharetrading@ yahoogroups. com, Shanthiya Chettiar <shanthiyachettiar@ ...> wrote:
>
> Herewith resending as per the member's request
>
> Shanthiya Chettiar
>


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Posted by nsivaa at 9:42 PM

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