Dividends & Bonus Share Issue Explained in Detail - தமிழ் | CORPORATE ACTIONS - PART 1
Uncover the misunderstanding that you have about Dividends and Bonus Share issue. Explore the concepts of bonus issues and dividends, with a focus on how they work in the context of corporate actions in India. If you've ever wondered how companies reward their shareholders or the benefits of bonus issues and dividends, this video is for you! 🔎 What are bonus issues? How do they work? Companies in India often choose to issue bonus shares to existing shareholders as a way to utilize accumulated profits or reserves. This increases the number of outstanding shares without affecting the overall market capitalization of the company. For example, let's say Company X announces a bonus issue of 1:1, which means shareholders will receive one additional share for every share they already hold. 💰 Dive into dividends, an important aspect of shareholder returns in India. Dividends are typically declared by companies that generate consistent profits and have a strong financial position. For instance, Company Y, a leading Indian conglomerate, may declare a dividend of Rs. 10 per share. Investors who hold the stock as of the record date will be eligible to receive the dividend. The ex-dividend date is the date on or after which a buyer of the stock will not be entitled to the upcoming dividend. 📈 Let's explore the stock price adjustment process for dividends in the Indian market. When a company declares a dividend, the stock price tends to adjust accordingly. Suppose Company Y's stock was trading at Rs. 200 per share before the dividend announcement. After the ex-dividend date, the stock price might adjust downward by the amount of the dividend, let's say to Rs. 190 per share. This adjustment reflects the fact that shareholders who hold the stock on the ex-dividend date will receive the dividend payout, reducing the overall value of the stock. 📆 Additionally, it's important to note that the stock price may also be influenced by other market factors, such as supply and demand dynamics, investor sentiment, and company performance. Therefore, stock price adjustments for dividends can vary in practice. 📈 Join us on an educational journey through the Indian financial landscape, as we provide valuable insights and practical examples to help you understand bonus issues, dividends, and their implications for investors. Whether you're a beginner or an experienced investor, this video is designed to enhance your knowledge and decision-making in the Indian market. 🔔 Don't forget to like this video, subscribe to our channel, and hit the notification bell to stay updated with more informative content on finance and investing. ⚠️ Disclaimer: The information provided in this video is for educational purposes only and should not be considered as financial advice. Always do your own research and consult with a qualified financial advisor before making any investment decisions. Thank you for watching, and we hope you find this video helpful and insightful. Let's unravel the mysteries of bonus issues and dividends together! Dividends and Bonus Share Issue Explained in Tamil தமிழ் #FinanceBoosan #investing #stockmarket Bonus issue in detail : https://www.investopedia.com/terms/b/... Wipro bonus issue exaggerated Mint Article : https://www.livemint.com/market/stock... Join this channel to get access to perks: / @finance.boosan _______________________________________________ Click here for more : https://bit.ly/3m4tygT _______________________________________________ Zerodha * Commision free investment in Zerodha for Stocks/Mutual funds Click this link to sign up now https://zerodha.com/?c=VCN587&s=CONSOLE Paytm Money * My investing experience on Paytm Money has been great. You can try it too by opening a FREE Demat account. Download now: https://paytmmoney.page.link/bVkYsumX... #usefulInformationBoosan Useful Information Boosan, Personal Finance Tamil, Productivity, Self improvment Boosan
