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Abhishek Kanth (career) (117 Points)

29 October 2017

I want to know that what is power of equity

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chamarthi venkatesh (Student CA Articleship) (848 Points)
Replied 29 October 2017

Power of equity means the ability of equity to earn returns
More the returns, more the power
Example:-

Suppose You bought 100 shares face value Rs.100 of a company in 1980,

1981 , 1 : 1 bonus = 200 shares
1985 , 1 : 1 bonus = 400
1986 split to 10 RS = 4000
1987 , 1 : 1 bonus = 8000
1989 , 1 : 1 bonus = 16000
1992 , 1 : 1 bonus = 32000
1995 , 1 : 1 bonus = 64000
1997 , 2 : 1 bonus = 192000
1999 split to Rs 2 = 9,60,000
2004 , 2 : 1 bonus = 28,80,000
2005 , 1 ; 1 bonus = 57,60,000
2010 3 : 2 bonus = 96,00,000

Today's Rate:412 You Earn 395 crore!!!

if u brought even 1 share also then the value is Rs 4 Crore

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