First look with ex-date

[StockEye]

Hi every one!

I'm relatively new to stocks and definitely new to this forum.
I've been investing and trading on-line largely on the basis of CNBC and web inputs, both in IPOs & secondary market. I learnt of this forum while browsing. I have a question now that is perhaps naive but important to my position on the learning curve.

Re Ex-Bonus date: is the date of trade (T) or the date of delivery (T+2) into your De-mat account, that is relevant ?

Also does a 1:1 bonus issue lead to halving of the scrip price? If so, how does the investor benefit?

Thanks

 

[Agilent]

Hi every one!

I'm relatively new to stocks and definitely new to this forum.
I've been investing and trading on-line largely on the basis of CNBC and web inputs, both in IPOs & secondary market. I learnt of this forum while browsing. I have a question now that is perhaps naive but important to my position on the learning curve.

Re Ex-Bonus date: is the date of trade (T) or the date of delivery (T+2) into your De-mat account, that is relevant ?

Also does a 1:1 bonus issue lead to halving of the scrip price? If so, how does the investor benefit?


Thanks

Read the thread called 'About Bonus Shares and stock splits'

Also carefully read in full http://www.investopedia.com/articles/01/072501.asp

Note that what we call Bonus issue in India is Stock split (or Stock Dividend) in USA

Also, by the way, what we in India call 'Stock split' (wherein the par value of the scrip gets reduced .. usually at least halved) does not happen in USA (because there they either have NO par value or its a token figure like 0.1 cent or 0.01 cent, and remains so permanently)

Can u elaborate yr first question ?

AGILENT

 

[Agilent]

Stockeye

Have a look at infy cum bonus /x bonus quote . They gave a 1:1 'bonus' . ( In USA it wd have been called a 2:1 split )

Does it help ?

AGILENT

 

[StockEye]

Thanks AGILENT.
I did the reading and also found the price halved first thing on 14th. So its no big deal as far as benifit to investor is concerned.

First part of my query was about the date. Suppose I had bought or sold my Infosys holding on 13th July, its ex-bonus date. The date of delivery would have been 2 days later (Trade+2days). Till then it would be BTST (ICICI webtrade).So which date would matter for bonus/split? Date of trade or date of delivery into/out of my demat account?

 

[Agilent]

Thanks AGILENT.
I did the reading and also found the price halved first thing on 14th. So its no big deal as far as benifit to investor is concerned.

First part of my query was about the date. Suppose I had bought or sold my Infosys holding on 13th July, its ex-bonus date. The date of delivery would have been 2 days later (Trade+2days). Till then it would be BTST (ICICI webtrade).So which date would matter for bonus/split? Date of trade or date of delivery into/out of my demat account?

Infy's record date is 14 July (today) . If you had bought xb yesterday, you would not have got the bonus (and rightly so) since the shares wd have come into yr acct only after 2 days

Likewise u can work out the mechanics of the xb sale transaction

See this http://www.blonnet.com/2006/01/18/stories/2006011802371500.htm( for Dabur ... which had a similar pattern ... record date one day after xb date )

Hope this clarifies

AGILENT

 

[StockEye]

Yes I think I've got it right now.
I'm glad to have joined this forum.
Thanks.

 

[Agilent]

Yes I think I've got it right now.
I'm glad to have joined this forum.
Thanks.

You are welcome.

Let me point out that more often than not, its the seemingly naive questions from members like you, that give us a chance to brush up our basics

And, believe me , in most such cases we get to learn something we did not know earlier, or were hazy about.

AGILENT