I See Wipro share fall Nearly 50 on my charts.
Plz tell how could be possible.
Bonus shares being issued tomorrow in the ratio 1:1 (Issued:current holding)
Today is the price adjustment before bonus shares are actually issued to share holders.
That’s why the 50% drop in price.
But that’s made up for in volume, so its the same thing
Means if I hold 100 shares of wipro then it’s gets double I.e 200. And price dropped to 50 %.Means Total price of share remains the same
COrrect.
The point of a stock split, or bonus issue is to increase liquidity, means more no of shares.
Higher the price of a single share, lesser is the amount of retail participation.
Example - Retail traders may do intra day with Infy or Wipro or whatever.
But I haven’t yet seen retail traders doing intra day with Eicher motors or MRF etc, because the capital requirements are extremely high/
ALSO this bonus issue is to make a point, that company has surplus $ which its willing to use to issue bonus shares, and that the business owners are confident of their business etc.
But take such statements with a grain of salt 
Don’t blindly invest in Wipro because they’ve given a bonus share.
Look at economic times or other new sources.
Such things are announced months in advance.
L&T is about to do it next month. Same with Muthoot finance etc!
Thanks I will take care of that from next time…
When will Wipro’s bonus shares get credited into my Demat account?