TABLE OF CONTENT
- What are Bonus Shares?
- Who is Eligible for Bonus Shares?
- Advantages of Bonus Shares
- Disadvantages of Bonus Shares
- Types of Bonus Shares
Bonus Shares – Meaning, Types, Advantages and Disadvantages
FAQS
- Does the issue of bonus shares enhances the company’s value?
- Who is Eligible for Bonus Shares?
- What is Ex-Date?
YES. The issue of bonus shares enhances the company's value and increases positions and image in the market, gaining the trust of existing shareholders and attracting several small investors to be a part of the stock market.
Shareholders who own the company's shares before the ex-date and record date are eligible to receive bonus shares from the company.
The ex-date is one day before the record date. Here an investor has to buy the shares at least one day before the ex-date to become eligible for the bonus shares.