Criteria for fluctuations on bonus issue
This query is : Resolved
Santosh Mehra
(Querist)
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?
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?
CA. Yayati Tyagi
(Expert)
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.
S.Srinivasaraghavan
(Expert)
20 May 2008
Yes that is the theoretical perception.
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