Stock market share information-what is bonus share- Right share-get rich with stocks
In today’s article, I will tell you what split share is. What is the right share and what is a bonus share? In today’s article, I will explain to you all what Pakistan Stock Exchange says in any stock market. So let’s get started.
#1:What is a split share?
- Split stocks
- Bonus share
- Right share
Difference between 2:1 4:1
Friends, sometimes it happens that the share of a company is very expensive and many people cannot afford it because it is expensive. Stock people can easily afford it so some companies split the stock. For example, if a company’s share is 1200pkr, the company will split it with 2: 1 or 4: 1.
2: 1 means to divide a stock in two. If one has one share of Rs. 1200 then his share will become two shares of 600 per. He who could not afford a share of Rs. 1200 can now easily afford a share of Rs. 600. If the company thinks that Rs 600 is too expensive, it will split it into 4: 1 instead of 2: 1.
4: 1 means that if someone had a share of Rs. 1200, now they have 4 shares of Rs. 300. So it happens stock split so every company when stock becomes expensive and no one can afford it then it splits the stock. So that every servant can afford it.
#2:What is bonus share?
Now let’s talk about what happens to bonus shares? Bonus share also has the same split stock concept. If a company announces a 100% bonus share, it means 1 “bonus share for every one share held” which can be called 1: 1. This means that if you had a share of Rs. 1200 then the company will give you a share award of Rs. 600.
This does not mean that you now have two shares of Rs. 1200 and your investment has increased, but it does mean that you have got two shares of Rs. 600. Then what is the difference between this split share and the bonus share? The difference between bonus shares and split stock is that the bonus shares the company pays out of its reserve.
That is, the company pays out of the money it has and the face value of the company will not change but if the company splits the stock then there is no loss of money from the reserves of the company and but the face value of the company changes. Is. Each company keeps its fee value at Rs 10. If the stock splits, its fee value will be Rs 5. Doing so will make a difference to what you get “Dividend”.
If you had one share of Rs. 1200 then the stock splits then you will have two shares of Rs. 600 and the fee value of the company will also change. If the fee value of the company was Rs. The dividend will make a difference. If the company announces a dividend then you will get 5rupees dividend per share. Your 2 shares will give you Rs.
But if the company announces bonus shares, your shares of Rs. 1200 will become Rs. 600. But the fee value of these companies will remain at Rs. If the company now announces a 100% dividend, you will get a dividend of only Rs. 10 per share. And your two shares will give you a dividend of twenty rupees. This is basically the difference between stock split and bonus share.
#3:What is the right share?
Now let me tell you what is called right share? As its name suggests, it means that it is my right. What is “Right Share”? First of all, the right share can be issued by the company which has already issued the share issue. And be registered on Pakistan Stock Exchange. The company that has issued the “IPO”. Be listed on the stock exchange. The same company can issue the right shares. So why does any company issue the right shares?
#4:Why company launched the right shares
Any company issues a right share because it needs money. You may be wondering why the company does not take a loan if they need money. If the company takes a loan then they will have to repay the loan so the company does not take a loan and they will have to repay it with interest. And there are financial problems for the company. This way the company issues more shares. They are called a right share.
For example, if a company needs 100 rupees, if that company takes a loan of 100 rupees, then that company will have to repay 110 rupees. If the company issues shares instead of taking a loan, then the company no longer needs to return the money to anyone. If the company has the capacity, it will earn money and pay dividends. If not, it will reinvest the money in the company.
#5:Example & conclusions of share market
The company makes right share announcements for various reasons, such as having to repay a loan, expanding a business, and so on. For example, a company called “ABC” needs money. The company has 1 million shares. And if the company needs money, it will issue 500,000 new shares.
When 500,000 new share launches have been made, the company will first make a share offer to the first shareholders as per the Act. The former shareholders have the right to acquire these shares. That is why they are called right shares. For example, if a company issues the right shares in a ratio of 2: 1, then the one who had the first two shares has the right to buy two more shares and the one who had 100 shares has the right to Can buy fifty new shares.
This means that if the company launches the right share, it does not mean that you have to buy the share. If you want to buy a share, buy it. If you don’t want to buy a share, don’t buy it. If you want to buy a little share, buy a little. If you do not want to buy the shares of the company then you can transfer these shares which means you can ask the company to sell these shares to the servant I mentioned.
I hope you have understood the type of all these shares and how they are used in the company. If you want to invest in the stock market then please read all my articles and see that If you want to know about cryptocurrency how to earn millions of rupees per month by investing in the stock market then here is the link you can read.