Q: What is a bonus issue, and how does it affect my holdings?<\/p>\n\n\n\n
A: A bonus issue is when a company distributes free shares to eligible shareholders. In the case of TradeJini, the share price falls in the ratio of the bonus allotment, but worry not \u2013 it doesn’t impact the overall value of your holdings. We display the bonus quantity only after they are credited.<\/p>\n\n\n\n
Example Scenario:<\/p>\n\n\n\n
Q: Can you give me an example of how a bonus issue works?<\/p>\n\n\n\n
A: Certainly! Let’s say Mr. Manav holds 10 shares of Reliance at \u20b9100 each, and the company announces a 2:1 bonus issue. After the bonus issue, Mr. Manav will receive 2 bonus shares for every share held, resulting in a total of 30 shares (10 originally bought + 20 bonus shares). Although the share price drops to \u20b933.33, the value of Mr. Manav’s holdings remains \u20b91,000.<\/p>\n\n\n\n
Partial Bonus Shares:<\/p>\n\n\n\n
Q: What happens if a company announces a 1:2 bonus?<\/p>\n\n\n\n
A: If an investor holds just 1 share, they’ll get 0.5 shares as a bonus. These partial bonus shares are settled in cash, and the funds will be credited to the investor’s primary bank account.<\/p>\n\n\n\n
Impact on P&L:<\/p>\n\n\n\n
Q: How does a bonus issue affect my Profit & Loss (P&L)?<\/p>\n\n\n\n
A: Your P&L will show an artificial drop until the bonus shares are credited to your demat account. Once credited (which takes up to 15 days), your P&L will be updated. You’ll receive an SMS from CDSL when the shares are credited.<\/p>\n\n\n\n
<\/p>","protected":false},"excerpt":{"rendered":"
Impact of Bonus Issue on Holdings: Q: What is a bonus issue, and how does it affect my holdings? A: A bonus issue is when a company distributes free shares to eligible shareholders. In the case of TradeJini, the share price falls in the ratio of the bonus allotment, but worry not \u2013 it doesn’t […]<\/p>","protected":false},"author":1,"featured_media":0,"parent":12619,"menu_order":263,"comment_status":"closed","ping_status":"closed","template":"","doc_tag":[],"acf":[],"_links":{"self":[{"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/docs\/12630"}],"collection":[{"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/docs"}],"about":[{"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/types\/docs"}],"author":[{"embeddable":true,"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/comments?post=12630"}],"version-history":[{"count":0,"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/docs\/12630\/revisions"}],"up":[{"embeddable":true,"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/docs\/12619"}],"wp:attachment":[{"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/media?parent=12630"}],"wp:term":[{"taxonomy":"doc_tag","embeddable":true,"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/doc_tag?post=12630"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}