In bonus and stock split the market price of share gets adusted in accordance of the ratio post bonus and split
but
In right issue and buyback there is no adjustment in market price of shares post right issue and buyback
Why so???
@vaibhavi_Shah : Market price officially get adjusted in cases of Dividend if it is 5 % or more than the closing price of traded share , Bonus , Split and Also Rights .
Buyback reduces serviceable equity of company . market behavior do adjust the price if required when there is substantial difference in buyback price and market price .
Market price of share in cases of Bonus , Rights , splits get officially adjusted exactly in same proportion on ex action day from closing price of last cum action trade.
Dividend too get officially adjusted if it is 5 5 or more than the closing price on the day of announcement .