Therefore, an investor gets 800 shares for free and the total holdings rise to 1000 shares (200+800). If an investor holds 200 shares of a company that further declares 4:1 bonus shares, it means that for every share held the investor gets 4 shares for free. Once bonus shares are issued, the total number of shares of a company rises. Bonus sharesīonus shares are additional shares that a company issues to its shareholders. It is fixed by the company while issuing shares to raise capital. The face value is also known as the intrinsic value of a share. Face valueĮach share issued by a company carries a face value at the time of issuance. This is mainly attributed to negative sentiments of investors prevailing in the markets. Typically, the prices are seen to fall at least 20% as compared to recent highs. Bear marketīear market is referred to as a market phase when stock prices consistently fall for a prolonged period. During such market phases, investors are generally more optimistic. When most stocks in a stock market are on a rise for a reasonable period of time, it is termed as a bull market. All buy/sell orders are to be placed within this time. In most Indian stock exchanges, trading sessions are from 9:15 am to 3:30 pm. Trading session is the time during which a stock exchange is open for trading. The company’s share price reduces as a result of stock split, since the total number of outstanding shares increases. ![]() ![]() This means that a company has split one share into two or three. The commonly used split ratio is 2:1 or 3:1. This is mostly done by companies to improve their share availability in the market. Stock split results in an increase in the total number of outstanding shares of a company as a result of splitting its existing shares. P/E = Current stock price/ earnings per share 6.
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