What happened to Castrol India stock opened 50% down ( Yest closed 419 &today 207),Any one knows reason?
Today is the corporate action (Bonus) ex-date for Castrol India Limited. Bonus ratio is 1:1 which means for every 1 share held shareholders will get 1 bonus shares. Share price adjusted to the corporate action event.
Price will be again normal after this event?
Nope. This are the normal prices. It will now trade in the series of Rs. 200.
If we are getting bonus 1:1 & price is half then what is the benifit to getting bonus,I am not getting point?
You can google it as to why company declares bonus shares. Happy trading
No sir ,I want to know is there any financial benifit to share holder or not? please I have new experience
1:1 bonus issue.
And because the price is not adjusted in the chart, Indicators will give false signals.
In short there is any benit or not for share holder?
For shareholders, it doesn’t make a difference. Additional shares will be issued according to the ration and the price will fall according to that. So the investment value will largely remain the same minus some fluctuations in the price.
Answered in detail here:
So what further if no benifit doing this., to sell it with loss or hold to get it improved , generally what happens after this?
Like I said no loss! You will get the bonus shares in your demat in a week or so.
I am kind of disappointed at the kind of replies you have received on this. The whole finance and trading industry seems to pride on being able to spin off lingo to make less sense. So let me share my limited knowledge with you on this while keeping it as simple as possible.
Bonus share means that the company is going to do a stock split. A ratio of 1:1 means that for every stock that you held, you will receive another stock, effectively doubling the number of stocks that you hold.
Merits / demerits of this: Stock split mean that the stock will now be available for cheaper, almost half the price. And what happens to cheaper commodities? They become easy to buy / sell, and therefore likelier to fluctuate. Their effective liquidity increases. But usually people trade with stocks in bulk, not a single unit, so this fluctuation might not dramatically double up, but just becomes more likely.
Happy trading! And I hope the community here becomes warmer towards noob traders as myself, and as the poster of this question.
Im also having the same doubt.I had 50 Castrol Which I brought @ Rs.411.00.Upon bonus issue my assumption was I will get another 50 Nos more @ Trading price of 380-400.But the share price became half.Then what is the benefit of getting bonus shares.better to use the technical word splitting.
Im still not clear how to differentiate spiting and bonus shares.here in my case I have not earned anything.Almost an year Im holding this share and the market price not hiked more than 2% of 205.50(Half of 411.00)