Stock Split | Buybacks | Rights Issue - தமிழ் | Bonus issue vs Split | Corporate Actions - Part 2
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- Опубліковано 18 чер 2023
- 3 important corporate actions in the world of finance: stock split, buyback, and rights issue. In this comprehensive video, we will not only delve into the intricacies of these actions but also shed light on the key differences between stock split and bonus issue, enabling you to gain a deep understanding of these concepts.
📈 Stock Split:
A stock split occurs when a company divides its existing shares into multiple shares, aiming to adjust the price per share and make it more affordable for investors without affecting the overall market capitalization. For instance, in a 2-for-1 stock split, each existing shareholder receives two shares for every one they previously held, effectively halving the stock price. This action enhances liquidity, improves marketability, and attracts a broader range of investors, resulting in increased market participation.
🔃 Buyback:
A buyback, also known as a share repurchase, involves a company repurchasing its own outstanding shares from the open market. By reducing the number of shares in circulation, a buyback effectively increases the ownership stake of existing shareholders. Companies often opt for buybacks to signal confidence in their stock, utilize excess cash, increase earnings per share, and enhance shareholder value. However, it is crucial to carefully analyze the company's motive behind the buyback and evaluate its impact on the company's financials and long-term prospects.
💼 Rights Issue:
A rights issue is a method through which a company raises additional capital from its existing shareholders. In this action, shareholders are given the opportunity to purchase additional shares at a discounted price compared to the current market value. This allows existing shareholders to maintain their proportional ownership in the company and participate in its growth. However, shareholders must diligently evaluate the terms of the rights issue, the company's financial position, and its future prospects before deciding whether to exercise their rights.
🔁 Stock Split vs. Bonus Issue:
While both stock split and bonus issue involve increasing the number of shares, there is a fundamental distinction between the two. In a stock split, additional shares are issued to existing shareholders in a predetermined ratio, without altering their proportional ownership or the face value of the stock. On the other hand, in a bonus issue, additional shares are issued to shareholders free of cost, resulting in a reduction in the face value of each share while maintaining their proportional ownership. Both actions aim to enhance affordability and market liquidity, but bonus issues act as a rewarding mechanism for shareholders without diluting their ownership.
Additionally, it is important to consider the impact on the face value of the stock during these actions.
📈 Stock Split:
During a stock split, the face value of each share remains unchanged. The company divides the existing shares into multiple shares without altering the overall value of the company or the individual shareholder's stake. For example, if the face value of a share was ₹10 before the split, it would remain ₹10 even after the split. However, the number of shares held by each investor would double, effectively reducing the price per share by half.
🎁 Bonus Issue:
In contrast, bonus issues involve an adjustment in the face value of the stock. Additional shares are issued to existing shareholders without any cost. Consequently, the company increases the number of shares outstanding and adjusts the face value of each share accordingly. For instance, if the face value of a share was ₹10 before the bonus issue, and a 1-for-1 bonus issue is announced, the face value of each share would reduce to ₹5 after the bonus issue.
While the face value changes in a bonus issue, the proportionate ownership of shareholders remains unaffected as the bonus shares are issued to them without altering their existing holdings.
Understanding the nuances of these corporate actions, including their impact on face value, is crucial for investors when analyzing the potential effects on stock prices, trading volumes, and overall shareholder value.
We emphasize the significance of comprehending these corporate actions as they can significantly influence a company's stock price, trading volume, and shareholder value. However, it is imperative to carefully evaluate the underlying reasons and implications of these actions before making investment decisions. Stay informed and make educated investment choices that align with your financial goals.
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1:01 adhu 27 cr bro not 27k cr
1:01 & 5:18 oru flow la aayiram nu solitruken, 27 Kodi my bad.
😂
மிக அழகான, விளக்கமான பதிவு. மிக்க நன்றி.
தெளிவான விளக்கம் சுப்பர் 👍
Crystal clear explanation... thanks as usual
I had doubts on bonus and split stocks I searched all of UA-cam but found answer only in this video 👍🏻 thank u so much 🙏 very clearly explained
Thank you Boosan .
அருமையான தெளிவான விளக்கங்கள் .
Stock split , Bonus , Rights issue & Dividend பற்றி நல்லதொரு புரிதலைக் கொடுத்தமைக்கு நன்றி தம்பி . ❤❤❤
Crystal clear, wow Boosan, thanks much.
crystal clear as always!❤
Enna manushan ya nee? Ivlo clear ah yarum explain panna mudiyadhu! Well done bro
Glad you find it helpful 😄
Long time doubt cleared thank you bro for detailed useful information...👍
Good one educational informative video
Brilliant content one more time…
Super information bro🎉🎉🎉
Very good explanation
Well explained 👏 👌 👍
Very useful. Thank you
arumai bro. now its clear
Repeated ah keka theva ila bro, awesome explanation ❤
Useful information
Great sir
Example kuduthu simple aa explain pandrathula mass
Clear explanation
Please tell your personal investment story bro it will help someone. You doing a great job bro.
super brother
Bro, all about opinion trading explanation video ❤
Thank you bro❤
🎉 super bro
Thanks bro...
Bro good explanation, kindly post video abt hero or zero call
Super bro
Really a very good explanation, can you please teach me option trading
Thank u thala
Channel to become best repository for know how to stock market in Tamil
You talked about the investor point of view of bonus. Can you tell me about the company point of view, why they give bonus share even they have an option split?
Can you talk/review more about US stocks like fundamentals and technicals of good market stocks. For eg. Google, Microsoft, Taiwan semiconductor, rivian, bank of america, jp Morgan&chase, etc...
Bro which is best, investing in nifty 50 index fund or investing in elss nifty 50 index fund.
PLZ REPLY
Bro..make video on
1.) HOW to buy upper circuit stocks
2.) HOW to sell lower circuit stocks
Nykka did a stock split. It helped existing investors to distribute their holdings to retail investors nu solranga. Idha pathi neenga yena think panrenga bro.
Hi boosan,Mutual fund la fund manager ra pathi epdi therinjikkirathu? Ethum web site irukka?
You should have covered 3&4 th point 3:09 which I feel very important one
Bro nama intraday le 1 stock vangitt athai sell pannumboth athoda value negative le iruntha nama invest panna amount mattum thaan loss aaguma illenna yevalo negative le vanthirukkutho avlo cash um loss aaguma ?
IOCL right issue pathi enna think pannuringa 🤔
Sir i got Lloyds steel 3k share for 90 paisa is it wise to apply for rights issue which is 15₹ .. please advise also let us know how to sell rights issue
Bro finance learning (like stock market, crypto currency, investment and etcc) related books oru video pooduga
Rights issue ku example Tata motors and Tata motors DVR, is it right???
june 13-100shares June 16- 50 shares vangirken. nan 150 shares tender vidalaama? en mail ku 100 share daan vanthurku tender vidalaam nu as per record date
Bro neenga sonadhula oru correction iruku nu thonudhu. For example 10 face value iruka stock 100% dividend sona 10 rupees per share varum. Andha stock 1:10 split panita face value 1 aidum. Ippo 100% dividend sona 1 rupees per share varum. But idhula vishyam yena na split ku munadi irundhu hold pana investor ku yendha change um Ila further share price up ana compounding agum. But after split ku appro fresh ah entry ana dha neenga sona mari dividend kamiya kedaikum. If I am wrong solunga correct panikaren bro
paytm money Beneficiary Demat Charges enna bro plx sollunga 15.35 edukuranga
Thalaivaa Fundamental analysis pathi part 2 video podunga
Please checkout Stock Analysis Made Easy Playlist : ua-cam.com/play/PLgb4aazT9mz8FQ1eJL5dFx4YC2TA1aHlY.html
Bro difference between 1:2 stock split and 2:1 stock split soluga rendu same thana bonus ku apditha work aguma
Bro wipro fundamental analysis
Bro profit book panrathuna ena bro 50 share vachirukam na nama vachiruka share 60 value pochina 10 share sale panrathutha profit book panratha
Bro ippo canara bank stock vankalaamaa
How to apply right issue share in grow app?
Best share for long term sollunga
i am a trader for past 2 yr. i am trading, learning and earning on my own till now. I am new to this buyback options . I have bought wipro before june 16 itself with 395rs . nan epothum pola share price increase anathum sell pananuma like normal trade ? or vera ethum option use pani sell pananuma brother ? How to book proft?
Say about shriram finance
US market investment sollu broooo😊😊
Thank you
Can u put one video of "Medico Remedies"
ஒரு சந்தேகம் இந்தியன் ம்யூட்வல் active ப்ண்டு 1.75 வரை expanse ratio வாங்கராங்க
But US nasdaq 100 fund like icici prudential
Fund expanse ratio 0.5
இதுல tax சேர்த்து இந்த expanse ratio வா அது தவிர expanse ratio கணக்கு ஆகுமா ?
Normally indian mutual funds ல expanse ratio ல stock வித்து வாங்கற செலவு சேருமா? சேராதா ?
How to apply rights issue bro
Powergrid corp yesterday 258 today bonus 1 for 3
So price is 203
What you prefer Nifty 50 Index fund or Sensex index fund?
Or can we invest equally in both ?
What to prefer and why ?
Toss a coin, choose something and first start investing. No difference in both
Vbl aa bonus vagan but it's in negative
Bro super video. Neenga solra concept la patha Apo enga wipro shares-a 445₹ buy back la kudthu profit book pantu again ipo iruka 380₹ price la new va accumulate panalam la??
Theoretically yes, but stock price may go up in the mean while.
@@finance.boosan thanks for the clarification bro!
4:32 bro are you sure about that
Dividend percentage is based on current market price bro
Split mattum face value low but bonus mattum low akkala enna reason pls reply brother
Bro na wipro la 61 stocks vachurika athu 16th record date apatha vanguna enala buyback la participate pana mudiyuma?
7:15 Last date to buy shares to be eligible Jun 15, 2023
Very clear speech ❤❤❤❤❤
Bro oru company dividend annocement pani ethana days ku aparam bank account la credit agum solluga bro
It depends on the company's announcement, usually there are 4 different dates for dividends
Announcement date, ex-date, record date and payout date.
Announcement Date: This is the date on which a company publicly declares its intention to distribute a dividend to its shareholders. The announcement typically includes information such as the dividend amount, the record date, and the payout date.
Ex-Dividend Date: The ex-dividend date, or "ex-date," is the date on or after which a buyer of a stock is not entitled to receive the declared dividend. In other words, if you want to receive the dividend, you need to own the stock before the ex-dividend date.
Record Date: The record date is the cut-off date established by a company to determine which shareholders are eligible to receive the declared dividend. If you own the stock on or before the record date, you are considered a shareholder of record and will receive the dividend.
Payout Date: This refers to the date on which the dividend payment is made to the eligible shareholders. It is the actual date when the dividend funds are distributed to the shareholders' brokerage accounts or sent as physical checks.
To know more about these dates & understand dividend better watch this video : ua-cam.com/video/VYuKDW6dYWQ/v-deo.html
Bro epudi analyse panrathu edum website eruka brother please tell me ❤✌️
We can use websites like screener, tickertape or moneycontrol
Bro i have one general doubt:
What is the time frame that Compund interest is calculated in mutual funds? Is it daily basis or Monthly basis? Please clarify
In mutual funds, compound interest is not applicable. Compound interest is commonly associated with fixed-income investments like bank deposits or bonds, where interest is earned on the initial principal as well as the accumulated interest over time.
Mutual fund returns, on the other hand, are typically based on the performance of the underlying assets such as stocks, bonds, or other securities. The returns generated by mutual funds can come from various sources, including dividends, capital gains, and interest earned by the fund's holdings.
But if you ask about the effect of compounding it happens on every day basis.
If I invest in index fund as every month for 20 years after 20 years if you return maybe two crores 15% tax means ,30 lakhs tax?????
Assuming you invested a total of 1 crore and it grew to 2 crores, the profit made is 1 crore. Out of this 1 crore profit, approximately 10% will be levied as long-term capital gains tax, resulting in a tax payment of around 10 lakhs. Consequently, your remaining amount after tax will be approximately 1.9 crores.
@@finance.boosan good 💯
Bro itc bonus share ipa anonuce panirukangala bro
No, I used ITC for example explanation.
Bro konjam naal munnadi capital gain tax Pathi video potrukingala , athila oru doubt, SGB ku capital gain tax same thana
If you hold SGB (Sovereign Gold Bond) until the entire maturity period, there won't be any capital gains tax applicable. However, if you choose to sell before the maturity period, it will be taxed similar to any other debt instrument.
First
Bro buyback la share sell panna tax illanu kelvi pattan . Is it true? U have not covered this.
That's an important point that I've indeed missed in this video, thanks for bringing it up here.
Yes that's correct, shareholders need not pay Capital Gains tax for selling in Buyback.
@@finance.boosan thanks for the confirmation bro. Keep posting useful videos like this ..
Bro small correction not 27 thousand crore shares .its only 27 crores 😁😁😁
ப்ரோ இப்ப இன்டெக்ஸ் பண்ட்ல நான் நிஃப்டி இன்வெஸ்ட் பண்ணனா என்ன ஆப் வந்து நல்லா இருக்கும் செக்யூரா இருக்கும் நான் அந்த இன்வெஸ்ட் பண்ண அமௌன்ட் ஒரு 20 இயர்ஸ்க்கு அப்புறம் எப்படி திரும்ப எடுக்க முடியும்
Pls tell me
Just a General Doubt
Many prefer Zerodha than Groww
But still Zerodha charges 300 as AMC where Groww doesn't charge any AMC .
What's the reason and Why so ?
Can I choose Groww for my Investments ?
Groww is one of the fastest growing broking platform, currently second largest broker in India. All brokers must comply to certain regulations & compliance needs, so endha prachanaiylayum maattadha varai yela broker um nalla broker dan.
About Zerodha, it is more of a personal preference for individuals, few prefer Groww, few Upstox, AngelOne etc..
Checkout why Zerodha is at the top : ua-cam.com/video/YT2Ltq6HL3U/v-deo.html
@@finance.boosan
Thank you!
As my view; Bonus, Split and Buyback of shares doesn't change anything in Market Capitalization and Fundamentals of the Company underlying health. It just increase their trade volume and fake their existing PE and EPS number in books. Actually it doesn't work if company is worthy!!!
Explain panniga but ithula Yethu best solla la
27,000 கோடி இல்ல, 27கோடி
மரியாதையுடன் பேசலாமே.
@@sensens1164 ok
@@sensens1164 தவறை சரி செய்யலாமே. பலமுறை அந்த வீடியோவில் தவறாக கூறியதால்தான் அவ்வாறு பேசினேன்.
Pinned Comment'ஐ பார்த்திருந்தால் இது தேவை பட்டிருக்காது.
@@vigneshkumar1126 கவனம் வேறு ஒரு முக்கியமான ஒன்றை கூறுவதில் முழுமையாக இருக்கும்போது இவ்வாறு ஏற்படுவது இயல்பு. நன்றி.
5.20 bro ethum 27cr not 27k cr
Yes bro, my bad - flow thappa soliten.
Cupid bonus 1:1 , current market price is rs.2400. appo ennaku 1 extra share will get, appo uh i will have 4800rs uh with 2shares?. Konjam sollunga bro
1200₹ per share a maridum.
Bro onga insta or telegram is solluga bro