Stock Split, Bonus Shares - What are those? how do they work? (தமிழ்)
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- Опубліковано 17 лип 2024
- Stock Split, Bonus Shares - What are those? how do they work? Explained in Tamil with English subtitles.
00:00 Intro
00:35 Stock Split Explained
02:50 Stock Split Reasons and Advantages
06:11 Reverse Stock Split
06:56 Bonus Shares
References:
www.investopedia.com/terms/s/...
www.elearnmarkets.com/blog/st...
Related Episodes:
Understanding Sharemarket: • Understanding Share Ma...
Stocks Portfolio: • Building Wealth (Ep. 6...
Capital Gain Tax Explained: • Capital Gains Tax Expl...
Investor Maturity: • Investor Maturity in S...
Lumpsum Investment: • Lumpsum Investment பண்...
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Twitter: / invstmntinsght
Web: vijaymohans.com/
#VijayMohan #InvestmentInsights #StockSplit #BonusShares
DISCLAIMER:
The content of this video is my own opinions and is for information purposes only. It is not intended as a substitute for professional financial advice. It is only intended to provide education about investments.
Related Episodes:
Understanding Sharemarket: ua-cam.com/video/8_uAwsJroB0/v-deo.html
Stocks Portfolio: ua-cam.com/video/KdCs3EWGJvQ/v-deo.html
Capital Gain Tax Explained: ua-cam.com/video/9Sy8uINjI3E/v-deo.html
Investor Maturity: ua-cam.com/video/atyF3QNcWxQ/v-deo.html
Lumpsum Investment: ua-cam.com/video/1NKAZVZxn_U/v-deo.html
I have a doubt sir..
In India it is ok because we can only buy full 1 share of a company.. but in US we can buy in fractional shares right? then what ever the share price like $200 or $2000 we can buy what we need.. like we can buy tesla for even for $10 (in fractional shares).. how it impact volume in Us markets?
Nannum athe tha ketka vandha US la fractional shares, india la ok athum illama existing shareholders ku ethu treat ah irukum eppidina, xyz compay bonus kodukrangana face value 10 nu iruku.
ex: 1:1 kodukurangana 1 share 2 aagum.. ipo dividend face value la 10% na 1rs ipo 2 share ku 2rs varum la, split na face value kammi aagidum, 1:10 split koduthangana face value 1 aagidum apo 10% dividend company kodutha .10 paise tha kidaikum 1share 10share aagirukum apo 1rupee thanna kidaikum.... Na soldrathu thappa irundha crt pannunga ennoda puridhal ethutha...
1. Though fractional shares are available, psychological effect is different between buying $150 vs $3000
2. When a stock splits 20 to 1, the number of shares is increasing 20 times. That means, the average volume of 4 Million shares per day will go up by close to 20 times after the split.
@Durai, Neenga sorlathu sari thaan. Aana dividenda naama vera perspective la paakanum. Atha naan next episode la cover panren.
Vijay - looking for details on options contract . Pls do a video on that .
Now a days my wife and I are waiting for a new concept from you. We are asking questions to eachother and learning more. We started a lot of research on finance and Stock Market. Why am I saying this..!!? You not only give idea your keeping my family more close to me. Thanks Guru..
That is wonderful to hear.👍🏽
@@InvestmentInsightsTamil Anna 3 month munadi pota video so this comt reply pannahma vituda poringa enaku intha doubt ah clear panuga share split and bonus namma 1 share vachirutha 10 bonus or stock split 1:2 iruntha 1 share ku varakudiya dividend bonus split share ku athiga share aana extra share ku dividend varu la aathu advantage thana yen aatha sollahla?
@Shan Balaji dividend also will be split and reduced as equal
Bones shares தரும்போது FACE VALUE மாறாது, STOCKS SPLIT ஆகும் போது FACE VALUE மாறும். வேறு பெரிய வித்தியாசங்கள் ஏதும் இல்லை.
Ungalai mathiri puriya vaikka ungalaal mattum thaan mudiyum. U r great Thanks
Your narration is more effective on the understanding of concepts. Thanks for the information.
I never miss your videos. Even known things when you explain on your attractive narration, it's 👍 convincing to listen.
Importantly everyone in the family is attracted by your way of explanation and they to listen it. 🙏
Mr.Vijay - Bonus shares helps stakeholders to get more dividend (provided company pays ) + investors gets additional shares without paying from pocket (might yield better returns in long-term because you have bonus shares )
Yeah. We will cover the dividends in the next week's episode.
He did not cover that part. Bonus share is an advantage for investors. Their investment gets doubled without any money from their pocket.
@@MultiBala11yes that's what I'm thinking
I know this information but still like to watch your video and support you! Keep it going sir.
Valuation is more important than number of shares that we are holding.. nice sir
Hi sir ... Whatever you are doing is great ... I'm so happy to found your channel... Started my investment journey from this year... You are my Guru for my financial knowledge 🙏🙏🙏... No one in my family or my relatives or teachers or friends have taught me the things you share ... It's a good opportunity for me to share your channel to all my friends and family . Keep up the good work 👍👍
Clarity is excellent Sir.
Fun Fact : Ithu rendume enna nu enaku terium. But ne atha explain panra vithatha pakkave intha video va pathen. Wonderfull teaching skills, which will directly hits brain!;)
Good explanation! Thanks.
Very informative sir.... Unique one... your voice, music 🎶🎶 nice 👍
Very informative. Thanks
Very useful and nice explanation sir
Great video sir 🙌
My doubts on split and bonus cleared now sir, ur guidance in financial advice, investing and stock market related videos are very useful to me and I implementing it which give me confidence n slow and steady financial growth. I couldn't submit my sincerely நன்றி கடன் directly with you. Anyways thank you sir 🙏 💗 😃
Nice information... Thank you
Good explanation 😁
Very wonderful message sir
Good explanation sir
அருமை விளக்கமாக
, செம்ம 👏👏👏
Hi sir, all your videos are really useful for long time investors. Can you post a video for National pention scheme please. thank you
If you split, the face value will decrease...if you do a bonus issue, the face value will not change
All your are super keep rocking🎸🎶🎶🎸🎶🎶🎸🎶🎶🎸🎶🎶
good job 👌
I have caught many who say stocks dilute after split :) You might want to talk about when does Stock dilution happen and may be a discussion on Authorized/Outstanding/Floats. With brokerages supporting Fractional shares/DRIP people with small accounts can benefit from investment with higher tickers.
மாலை வணக்கம் விஜய் மோகன் சார் 🙏🏻 😊
Nice sir... 😍😍😍
Thank you sir
Sir, what's the effect on face value of a share in both the cases and face value will have any impact?
Hi sir, vanakkam. Thank you so much for your valuable videos. These kind of video help me to learn tons of information in share markets.
Can you please clarify between growth stocks and dividends stocks? Which is more useful in long terms.
We will have a separate episode on that.
Hello Sir.. very nice videos and all of these your videos are really eye opener for people like me.. please keep posting such videos. I have A question, should we consider fed rate hike and invest ?, will there be any impact in the stock market. I understand from your previous videos that no one can predict future stock market, but whats your opinion on this scenario?.
If you look back at the history, rate changes happens all the time. And most of the time, stock market has ended up positive following an increase in rate. But hat should not be a driver to decide on our investment decisions. We have to follow just simple rule. Just keep buying the index as and when we have the money that is not needed for at least another 5 years. It is as simple as that.
Fave value will not change it will always be same right...the changed value is called market value right? And the dividend will always be calculated based on the face value right ?
Hi Sir if once split the shares company will give dividend same year it will get dividend advantage?
I keep on asking. Please respond. Why DII bids or FII bids not showing in bid or offer while trading in Zerodha open market?? They should have large quantities to show in top 5 bid or offer rights??? Why is not showing??
Thank you sir enakum bonus tharanganu sonaga nanum Kushi ayitan but actual ah nadanthathu split dan
If P/B ratio is high, giving bonus shares will reduce this ratio down.. Basically bonus shares will increase the book value of the company. P/B may not be used extensively now, but it is once an important parameter to perform fundamental analysis during Ben Graham period
Book value is independent of number of shares or price of a share. So I don't understand how the book value increases due to additional shares. P/B is still important. with Bonus shares too Value of share decreases.. keeping P and B the same. So no impact to P/B
Please upload Swaps Deravetives and it's types...........
thanks sir
Thanks Vijay for another valuable insightful video, lot of brokerage firms provides fractional shares to buy any stocks, i guess we don’t need to wait till stock splits for any stocks to buy, is that right?
That is correct. But I was referring to the psychological effect of buying it for lower price.
And the increase in volume as he mentioned is a key aspect of the stock split. More ppl cud participate in stock and Options trading.
Dear Mr. Vijay, does index funds also have Load and No-Load types of funds? Or, is the Load only for actively managed funds? Thank you!
It depends on the fund. They might choose to have load.
Hi Sir, need Financial advise from your end, how to reach you to get the things.
If stock split face value will be changed, if bonus face value will be not changed that's important point
Dear Mr. Vijay, Thank you for your videos. Very informative and I am a learning a lot from these posts. Thank you! I live in the U.S with the plan of returning to India in a few years (5 to 10 years). If my goal is to go back, is it ok to invest here in the U.S through taxable brokerage accounts? If yes, can I still keep my brokerage account even if I no longer have a residence or an address in the U.S? Or, do I need to liquidate when i move back? Can you please do a video on this topic? Thanks!!
Sure, you can invest in brokerage account here. But when you leave, you need to keep the account in a brokerage that supports international address like IBKR or Charles Schwab.
@@InvestmentInsightsTamil Dear Sir, Thanks for the response. Do you know if Vanguard and Fidelity support international address? I have been investing a little bit in Vanguard so far. Not sure what will happen to it when I leave the county.
@@kk_c As far as I know, they don't. You can always transfer the assets to brokerage that supports International address when you leave. You do not have to do that right now.
Hi sir your information is verry good and use full for us and i doubt any changes in face value of shares when they anounce bonus shares or split
Face value changes for split but not for bonus.
@@InvestmentInsightsTamil thank you sir
Great explanation, I always wonder if there is any cap limit for the total no of share available for public to buy? I don't think that any company have a defined no of share available for public, say for example if I have a one million $ then I can invest in a stock, even if I have a billion $ I can do the same in that case the total no of share will be unlimited to public to right? correct me if I'm wrong
You can buy as much as we want. But if I am buying for 1 billion, I will not buy thru regular brokerage. I would rather go thru an investment bank or other intermediaries to get access to the shares.
Sir ennoda nyka stocks 1200rs ku 50 shares vangunen. Stock split agi 250 bonus nu katichu, average price 200 achu then na 212 ku 50 shares sale pannen but en bonus shares um kanom athuku money um varala sir pls help
There is a company with 10 shares and value of one share is 10,000. And then they split up the shares to expand the no.of shares meanwhile the value of one share is also decreased to 5000 right. My question is... Is 5000 is the market value and 10,000 is the face value now ?
I like the stock split for selling my covered call purpose..( After purchase the 100 shares of Google and Amazon )
I like it so i can buy LEAP calls or strangles :)
Bonus na apo inoru stock thara mattanga la same rate ku?
Good Explanation Sir,
I have one doubt
Will change face value also for share split?
If yes it will impact dividend...??
Yes. Face value changes. But the number of shares changed as well. So the total dividend payout will not be any different for us.
Acquisition of shares pathi video podunga boss
MRF share split panna nalla irukum :)
Hi sir, need financial advise for wealth creation, kindly let me know how to reach you
How to sell in Zerodha
What is BO ID
While selling in Zerodha it is asking
Sir, in 1:1 Bonus shares if a person holds 100 stocks then it will be turned to 200. Then he will receive dividends for 200 stocks right?
True. But we have to see the dividends payout in a different perspective. I will cover that in next episode.
We can buy Partial shares. How does that affect the ownership of shares and stock split? 1/20 of 3000$ is 150$. However, buying partial shares of 0.05 shares is possible. Can you explain this?
Possible, but not on all brokerages.
ராதே டெவலப்பர் ஷேர்10₹ முக மதிப்பிலிருந்து 1₹ க்கு மாற்றி எண்ணிக்கையை அதிகரித்ததேன்?
When the reverse split happens, what will happen to the investors who hold those stocks? Keeping your example, in mannar and company, if 10 shares become 5, what will happen to those other 5 share holders .. pls explain
Whatever number of shares they hold, it becomes half.
Hi Sir, Post share split announcement, the Amazon share prices are not stable and it falls two years low now. Any view, whether this falls further after fed interest increase? And after post split what would be the average share price?
Hi Sir, any insights or your view on my post?
Price drop has nothing to do with the split. But more related to current market risks.
Can you put a video on the optimal number of stocks and ETFs in our portfolio? and how to rebalance properly?
It is individual's preference. I do not see a reason to have more than 4 funds in our portfolio. Stocks - it totally depends on investment style. There is no optimal number.
@@InvestmentInsightsTamil Thank you
why do a company need to do this exercise? Yes trade volume would increase and it would be affordable for many investors to buy/sell .. But why would a company care to do it? what is the ideal rational behind it ,,,?
Sir bonus issue panna face value change aagathu la so ippo company dividend issue panna namaku additional dividend kedaikum la but split la appadi illa la am i right sir
They do that purely for accounting perspective. Dividend athigama kodukanumna, they can do that thru split as well. Nothing stops them. I will cover the dividend topic in a separate episode.
@@InvestmentInsightsTamil sir stock split pana face value changes we will get the same amount of dividend like we got even before the split how the dividend is increased sir plz explain this in your next video
THANKS FOR YOUR REPLY❤
There is a lot of difference between stock split and bonus share, in a stock split the face value will change, change of face value affects the dividend given by companies, apart from that there is a taxation angle to it.
It's not factually right to say it doesn't affect the stock holder.
you did not mentioned about compounding growth to the investor because of stock split and bonus..that is the main advantage for the small/retails investor
Where do you see the growth from a stock split?
Sir please more vedio uptate sir
Bro - do we have to pay capital gains after selling biocon bonus shares if yes how much is the capital gains
Yes. Your cost of acquisition for bonus shares would be 0. So all the money you from selling bonus shares would be capital gains and you will need to pay tax on that.
What happens if I have a fractional shareholding? Is the spilt available to me? How much will I be given?
It works exactly the same way. If you have 0.5 shares, it will become 0.25 shares after 1/2 split.
sir i have tata steel in holding they announced 1:10 split will split directly reflect in my portfolio of is there any procedure to apply for split
Nothing to do from our side. It will automatically happen for us.
@@InvestmentInsightsTamil thanksyou sir
Sir can you please tell the impact of these split and bonus on dividends.
The answer is in next episode: ua-cam.com/video/uFtKyR5-Wlk/v-deo.html
If you split, the face value will decrease...if you do a bonus issue, the face value will not change
Bonus has relationship with face value and dividend. Split and bonus are different.
sir sorry muttal thanamana kelvi ninaikathenga. bonus share kodutha kandipa extra dhane irukanum. deepavali bonus pongal bonus madhiri sola mudiyuma please.
sir bonus share la namaku oru share extra varuthula so athu namaku profit thannea ....free ah oru stock kadikuthula
hmm... you have to watch the episode again.
@@InvestmentInsightsTamil yes sir now I understood, before I thought bonus share will be given without change in price.....now I am clear thank you sir
Hi Vijay.. Need ur insight here.
I live in India and own X stocks of Amazon vesting in different time periods. now due to stock split my stocks are gonna multiply as 20X... now i don't wanna sell these vesting shares and hold them back seeing your video - in that case i have to pay $1012 per share for taxes alone inorder to hold the vesting shares in my Morgan Stanley Account.
Now, is it worth to pay this 77k INR per share and hold them? will i benefit out of this stock split???
**DISCLAIMER - I LIVE IN INDIA AND HAVE NO PLANS ABOUT SHIFTING TO THE USA***
Share numbers are going to increase 20X. But the total amount is going to be the same after the split.
For vesting - don't you have to pay the tax on vesting shares regardless of whether you are deciding to hold them or not? I do not think that tax needs to be accounted for in your decision of holding as you have to pay the tax regardless. But holding them for long term after stock split, is your own decision. For that decision, you should not consider the benefit from stock split as it is irrelevant for long term. You should consider only whether you believe in this business growth in long term. If you do, stay invested. If not, sell and switch to an index fund.
@@InvestmentInsightsTamil thanks for the reply and sharing ur thoughts... Yes - have to pay the tax if i wanna sell/hold. but there is a difference - if i sell i will get money (minus tax). if i hold i have to pay 77k from my hand... FY end boss - neraya selavu irku... :P anyways i will consider it as buying amazon stock for 77k INR. _/\_
@@sheryldawson2860 🤣👍🏽
சார்,என்கிட்ட பத்து லட்சம் உள்ளது,அதை mutual fund இல் முதலீடு செய்யலாம் என்று நினைக்கிறேன், ஆனால் அந்த தொகையை ஒரே ஃபண்டில் முதலீடு செய்வதா அல்லது மூன்றாக பிரித்து மூன்று ஃபண்டில் முதலீடு செய்வதா?? மூன்றாக பிரித்து முதலீடு செய்தால் compounding ஆகிறது பாதிக்குமா???
மூன்றாக பிரித்து முதலீடு செய்வதால் compounding பாதிக்காது.
@@InvestmentInsightsTamil மிக்க நன்றிகள் சார்🙏🙏🙏
Hi sir naan 40000 every month invest pananum long time 15 year stock illa mutual fund ethu best plz
Watch this Stocks Portfolio: ua-cam.com/video/KdCs3EWGJvQ/v-deo.html
Thank you Anna
🎉🎉❤❤
Simply compare Microsoft and apple. Amazon and google took same path. It doesn’t meant anything for value investing.😀
Mannar and company
India la company illa sir.
Last video @ this vido example US company. Investment India or US
Mannar and Company Indian company thaan boss. 😜
@@InvestmentInsightsTamil company list NSC r BSC... Stock price ???
🤔🤔🤐🤐
👏👏👏👏👏👌👌👌👍👍👍
Now, Tata steel done that 🙊
Sir, I recently moved to India after a decade . I invested in stocks and ETFs in a good length for past 3 yrs. Now, i am thinking to settle down in India for some family reasons. My earnings going to be in INR. I want to at least keep my current stocks and index funds to get compounded for another decade. Is it okay for me to maintain the stocking accounts for longer run in US even if I am not physically present there? Does it has any legal complications? Please share your thoughts.
You need to make sure that you have the accounts in brokerage that supports International address like Charles Schwab or IBKR. Another thing to remember is - the inheritance tax for no us resident is 40% for any amount over $60K.
Wrongly Explained.. It should be 2:1 .. instead of 1:2.. please make sure provide correct information
There are 2 points:
1.Bonus and Stock Split has different tax implications in India.
2.Option contracts of 100 Shares is not applicable in Indian Context.
Good points. I did not actually realize that. Bonus shares are actually coming out to be disadvantageous from tax perspective when compared to stock split.
@@InvestmentInsightsTamil Otherway.
Come March every year, many companies hurriedly announce Bonus issues.
One may offset, STCG in his portfolio against STCL by selling his original holdings at XB price and deferring the selling of bonus shares at 0 investment value to the next financial year.
Example: HGS (Hinduja Global Solutions) issued Bonus 1:1 and a dividend of Rs28. If I bought 1 HGS share at Rs 2600 CB and Sell 1 share at Rs1300 XB, then my STCL is -1300 and I continue to hold 1 share at Rs 0. (CMP 1125)
Example 2: Infibeam Avenues issued Bonus 1:1. If I bought 1 Infibeam share at Rs 36 CB and Sell 1 share at Rs 22 XB, then my STCL is -14 and I continue to hold 1 share at Rs 0 (CMP 21.5).
$3000÷2=$1500
Not $150
Amazon is doing 20 to 1 stock split. 3000/20=150. Kooti kalichu paarunga. Kanaku sariya varum.
Don't tell wrong 1:2 means 2 shares you have means 1 share you got ,for example ; you have 20 shares means you got extra 10 shares finally you got 30 shares for 1:2 ratio
Oru use um illay
Waste video sir
Thanks sir