Bonus share vs. Stock split

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  • čas přidán 25. 07. 2024
  • The names stock split and bonus issue are quite deceptive. Listening to "stock split" seems as if the number of shares might increase and when one talks about "bonus issues", it seems that the company is giving some extra shares, that too for free. But is it really true?
    Stock splits and bonus issues are two ways that companies can make their shares more affordable and accessible to investors. This can lead to an increase in demand for the shares, however, it is important to remember that stock splits and bonus issues do not change the underlying fundamentals of the company.
    In this video, we discuss these two corporate actions in detail and also talk about how they are different from each other in Hindi.
    Refer to the below links to learn more:
    1. Face value, book value, market value - • Difference between fac...
    2. Impact of bonus and split on F&O do check out the video - • Impact of corporate ac...
    3. Learn more about the stock market here: zerodha.com/varsity/
    Time Stamps
    00:00 - Introduction
    00:45 - What is Stock Split?
    04:05 - Why companies do Stock Split?
    04:35 - What are Bonus Shares?
    07:45 - Why companies do Bonus Issue?
    08:20 - Difference between Stock Split and Bonus Issue
    08:50 - Impact on Balance Sheet
    11:38 - Conclusion
    #stocksplit #bonusissue #investing #stocks #finance #trading #stockmarket #financialeducation

Komentáře • 86

  • @jashankumar4700
    @jashankumar4700 Před 10 měsíci +8

    I want to say that those people who are saying that stock market is like gambling see this content to change your mindset

  • @harjeetkhurana964
    @harjeetkhurana964 Před rokem

    Very well explained and easy to understand..
    बहुत बढ़िया …
    अच्छे से समझ आया ..

  • @rupam39
    @rupam39 Před 10 měsíci +3

    Wow....Amazing explanation.
    Blown away by the simplicity of explanation technique, when these sections were explained:
    1.Difference between stock split and Bonus issue
    2.Impact on balance sheet
    These videos are amazing than the varsity app.
    Also, I would love a simulator application, that teaches or rather train on how, when to execute a trade, be it stocks, f&o or anything.
    Please🙏🙏🙏🙏

  • @nikhil11vtx
    @nikhil11vtx Před 8 měsíci

    Khurana ji…aap cha gaye…Gratitude from one Khurana to another 🙏🙏🙌

  • @osmreview
    @osmreview Před rokem +1

    My favourite teacher lot’s of respect 🙏

  • @ask2malik
    @ask2malik Před 6 měsíci

    Thanks for making it very simple to understand.

  • @SaregamapavanN
    @SaregamapavanN Před 5 měsíci

    Absolutely amazing knowledge sharing, kudos to khurana g 😊

  • @meenakshitripathi9720

    Informative...well presented 👍

  • @krashish1
    @krashish1 Před rokem

    Explained in perfect manner..

  • @mrajesh1947
    @mrajesh1947 Před 11 měsíci +1

    Thank you for making content so detailed with proper examples, and I really loved it, but it would be more helpful if you could make content also in english.. I can't understand hindi, but the presentation with examples and your explanation made me understand the subject.

  • @VARSHAKUMARI-hz9xh
    @VARSHAKUMARI-hz9xh Před 7 měsíci

    superbbbb explanation mam amazing very well done

  • @abhishekparjane8276
    @abhishekparjane8276 Před rokem +2

    Please Continue this series in hindi👍

  • @amarkantkumar4233
    @amarkantkumar4233 Před 10 měsíci

    Well done Astha. Well done team .Please continue to make more videos in Hindi. Can do entire fundamental analysis playlist in hindi itself

  • @prashanttripathi5179
    @prashanttripathi5179 Před 9 měsíci

    That is quality content 👍🏻
    Very Nice Explanation.
    Thanks Zerodha Varsity😊

  • @brijmeena8081
    @brijmeena8081 Před 11 měsíci

    Thanks for informative videos ❤

  • @swapnilsapkal2391
    @swapnilsapkal2391 Před 5 měsíci

    Amazing content, in simple language

  • @GATExpresso
    @GATExpresso Před 10 měsíci

    Great initiative by zerodha for learners .
    Thank you

  • @cliffordrodrigues9159
    @cliffordrodrigues9159 Před 9 měsíci

    Insightful, Thanks

  • @achalnagar724
    @achalnagar724 Před rokem

    Nice....keep sharing in this easy language but if possible share everyday

  • @anirudh123cool
    @anirudh123cool Před rokem

    Well explained

  • @stockwonders
    @stockwonders Před 2 měsíci

    Nicely explained

  • @Tinku1786
    @Tinku1786 Před 11 měsíci

    Very informative video. So is the Market cap and total equity of a company are same?
    thanks.

  • @AkashSingh-je5nm
    @AkashSingh-je5nm Před rokem

    Well explained mam

  • @simpletutorial4123
    @simpletutorial4123 Před 9 měsíci

    good teacher

  • @navanu100
    @navanu100 Před 5 měsíci

    Good show

  • @amrit1144
    @amrit1144 Před 5 měsíci

    Thank you ji

  • @pradeepkumar-ho7ce
    @pradeepkumar-ho7ce Před 11 měsíci

    Thanks for sharing basic knowledge of Stock split and Bonus share. I have one question whether Face Value could be lower than 1??

  • @ayurvedwithrakesh
    @ayurvedwithrakesh Před 5 měsíci

    Good ❤

  • @zaid_ahmad_
    @zaid_ahmad_ Před měsícem +1

    Ma'am you're amazing 👏

  • @mookam8888
    @mookam8888 Před 21 dnem

    Thank u

  • @guptaabhishekh3879
    @guptaabhishekh3879 Před 10 měsíci

    Ma am auction option which is introduce in zerodha can you explain lain tha

  • @pradeepsingh-mh7ir
    @pradeepsingh-mh7ir Před 4 měsíci

    Nice video, again. Madam, pls add a view point of a Promoter, Investors and Public for every topics with example, so that orientation of public could be clear.
    For example, here u hv explained that Asset would be same for the promoter, but what impact of Bonus or Split happens to public wealth. I know this, but everybody don't knows the same.
    This would be very interesting and very helpful for everyone......i think so.🙂

  • @anishagrawal6276
    @anishagrawal6276 Před 3 měsíci

    MADAM U R GREAT

  • @randomvideo6
    @randomvideo6 Před 4 měsíci +1

    Samjhaya asaan tarike me apne par iska asal life me kya impact padta hai wo thoda complicate hai..

  • @ankitp787
    @ankitp787 Před 4 měsíci

    Good knowledge sharing
    Madam
    But please provide Hindi version
    Why company listed IPO

  • @AB12395
    @AB12395 Před 5 měsíci

    Well explained...but i have a question if price falls after bonus,then what's the benefit of bonus?

  • @pankajagarwal1738
    @pankajagarwal1738 Před 9 měsíci

    Dono case me book value par kya impact hoga

  • @anirban3190
    @anirban3190 Před rokem +1

    Mam,
    Thanks for your video. I am referred to this video by Karthik Sir. Meanwhile, at last you spoke that " Share capital is adjusted by stock split and Reserve is adjusted by bonus issue". However, we saw that share capital remains the same despite the split. So, will it be like "Face value is adjusted by stock split"? Please confirm if I am missing somewhere.

  • @brijmeena8081
    @brijmeena8081 Před 11 měsíci

    In which scenario (bonus share or stock split) investor have maximum Chances of profit?

  • @AbhishekKumar-uv7kq
    @AbhishekKumar-uv7kq Před 11 měsíci

    Upload more videos regularly.

  • @kashish6733
    @kashish6733 Před rokem +1

    Well explained. I have a query, You said the issue of bonus shares makes the share price affordable. But if the face value is not going to change in case of bonus issue then how is it going to make it affordable.

    • @varsitybyzerodha
      @varsitybyzerodha  Před rokem

      Following a bonus issue, the number of shares increase and price of the share falls. This makes the share price more affordable to the retail investors.

  • @neha4mrs
    @neha4mrs Před 11 měsíci

    Which cases mein stock split hote hain and which cases mein bonus ...can you please clear my doubt

  • @RajeshChakravarti-il6vh
    @RajeshChakravarti-il6vh Před měsícem

    I have purchase 60 share of hpcl and company announce 1:2 then how manny share I will get and how to calcute prise

  • @hrishabhjoshi5847
    @hrishabhjoshi5847 Před měsícem

    Stock split me share capital same hi to rha, kaha adjust hua ?

  • @vimalak
    @vimalak Před 5 měsíci

    Do we really get the extra shares added to our account automatically in stock spilt?

  • @arpitjhalani8227
    @arpitjhalani8227 Před 6 měsíci

    In bonus share reserves get down where it goes investor didn't get any benifit from it only in books it rotate

  • @ramsakal8290
    @ramsakal8290 Před 11 měsíci

    Liquidity increase karke company ko kya profit hota hai.?

  • @Akshaykumar-tl4re
    @Akshaykumar-tl4re Před 10 měsíci

    Hello mam stop loss ke upper video

  • @shivammishra5730
    @shivammishra5730 Před 6 měsíci

    but how investors gets benifits from bonus

  • @Mr.versatile529
    @Mr.versatile529 Před 10 měsíci

    In 3:1 bonus 3 shares given per 1 share so now number share is 4 but he now only need to pay 3 face values of share bcz 1 face value already given
    So if he have 6o cr reserve he pay 30 cr to investors not 40cr right

  • @unique_mzn
    @unique_mzn Před rokem

    Please upload every chapters lecture in hindi

  • @user-jf5kg8xg1f
    @user-jf5kg8xg1f Před rokem

    Please reply, what happened if buy shares after record date but before allotted date? Reply please as you said in video, ask if any doubt

    • @varsitybyzerodha
      @varsitybyzerodha  Před rokem

      If you buy shares after the record date then you will not be eligible for such shares. One has to buy shares 1 day prior to record date according to T+1 settlement cycle.

    • @user-jf5kg8xg1f
      @user-jf5kg8xg1f Před rokem

      @@varsitybyzerodha Thanks, please reply a query more, IF STOCK SPLIT 10:1, SO IN THAT CASE 90% LOSS ON NEXT DAY.

    • @varsitybyzerodha
      @varsitybyzerodha  Před rokem

      Stock split 1:10, that means 1 share is divided in 10 parts. So if you have 100 shares and stock price is 750 in that case -
      Number of shares * Share Price = Market Capital
      100 * 750 = 75,000
      Now,
      1000 * 75 = 75,000
      Share price did fall to 75 this might seem like a loss but actually it is not because your number of shares have increased.

    • @user-jf5kg8xg1f
      @user-jf5kg8xg1f Před rokem

      @@varsitybyzerodha Thanks for reply, but my view is different, I asked if I buy between record date and allotted date

    • @ashutoshgupta321
      @ashutoshgupta321 Před 10 měsíci

      ​@@user-jf5kg8xg1fthat's also after the record date only so you won't get.

  • @vinayrashivadekar5654
    @vinayrashivadekar5654 Před 5 měsíci

    9:05 eye 👁️👁️ opening calculation

  • @pravinnavlakhe3871
    @pravinnavlakhe3871 Před 9 měsíci

    After issuing bonus share ...in how many days it will reflect in our portfolio???..
    Please guide mam

  • @sidhnathmishra7896
    @sidhnathmishra7896 Před 2 měsíci

  • @sudarshansharma3945
    @sudarshansharma3945 Před rokem

    I understand Hindi, but please release this video in kannada as this company is from our state

  • @hussam2152
    @hussam2152 Před 3 měsíci

    at 11:00 it is 2:1 and not 1:2

  • @nirajdesai2291
    @nirajdesai2291 Před 10 měsíci

    1.But mam as i know whenever company give divedend as something addtional to there share [they distribute profit of company] and when they want to increase market cap of company they give profit as bonus share.
    2.definatly whenever company distribut something from reserve or profit it benfit investor something additional to share these is something a investor expect from a company.(these i read on Z varsity)
    3.So ur point that market cap will not increase is only valid for stock split not for B share.
    Sorry for big note But these something i known about B share and i read Zvarsity website

  • @rajendranpj7778
    @rajendranpj7778 Před 10 měsíci

    Excellent video I was searching for 😊

  • @omkar_03_
    @omkar_03_ Před rokem +1

    Ek concept kaha par bhi available nhi hai....bas bonus share ka concept with example mil jata bhadiya rahata..q ki face value premium k sath kasi adjust hoti hai wo janana hai ...iss video me isi concept ka kami hai, sabhi jagah search kiya kahi bhi nahi mila yahi bhi nahi..bas ek recent example k sath bonus share wala video bana sake to banalo badi meharabani hogi

    • @varsitybyzerodha
      @varsitybyzerodha  Před rokem

      I hope you are talking about options premium. To understand the Impact of bonus and split on F&O do check out the video- czcams.com/video/MX-6rdHDPbE/video.html

    • @omkar_03_
      @omkar_03_ Před rokem

      @@varsitybyzerodha no
      Absolutely no
      I m not talking about options premium.
      I m talking about share price premium
      Share-market price = face value + premium
      In the above example you just showed impact on face value..not the whole share...
      Plz read my above comment again
      I want to know impact on share price..how this affects

    • @varsitybyzerodha
      @varsitybyzerodha  Před rokem

      Share market price = is not including FV. FV is a notional value created at the time of issuing the share and the premium that you are referring to is 'Securities premium', which is a balance sheet item and sits as a 'Security premium reserve'.
      Also, in our example, both in this videos (and the other one), we have discussed the impact of corporate action on FV, balance sheet, and the market price of the security. Request you to watch the entire video.

    • @snandansharma21
      @snandansharma21 Před rokem

      ​@varsitybyzerodha Actually, we don't call it 'Securities Premium Reserve' anymore. It's only 'Securities Premium' now

  • @gouthamchunduru
    @gouthamchunduru Před rokem +1

    But what are they gaining out of bonus?
    If affordability is the only reason, why can't they just do stock split?

    • @varsitybyzerodha
      @varsitybyzerodha  Před rokem

      This is because bonus issue is also one of the replacements to cash dividends. If the company is unable to pay dividends, it can issue bonus shares. But stock split cannot be a replacement for cash dividends, thus bonus.

    • @gouthamchunduru
      @gouthamchunduru Před rokem +1

      @@varsitybyzerodha but incase of dividend we get real money. What will a shareholder gain if a bonus is given? Sry for these naive questions

    • @varsitybyzerodha
      @varsitybyzerodha  Před rokem

      The existing shareholders get additional shares without paying for such shares.

    • @gouthamchunduru
      @gouthamchunduru Před rokem +1

      @@varsitybyzerodha Hmm. But what is the advantage of having 2 shares worth Rs100 instead of 1 share worth Rs200

    • @gouthamchunduru
      @gouthamchunduru Před rokem

      @@varsitybyzerodha pls help me understand above🥲

  • @vincentpinto1127
    @vincentpinto1127 Před rokem

    Thanks for a well-made video, and well explained too!
    At 11:42, you finished saying that share capital got adjusted. Actually, no! Share capital did NOT get adjusted. It is the face value that changed and thus number of shares increased, KEEPING the share capital unchanged. Very likely this was an inadvertent slip of the tongue. Please have your video editor insert a posted noted saying the above. It's very easy to do. Other than this, excellent video. Thanks.
    Also, a very common pronunciation mistake:
    Price is NOT pronounced as prize!! No zz sound at the end. The zz is NOT pronounced as in ज़रा.
    It is pronounced with a ss at the end. As in the ss in सपना.
    Try it a few times and you'll get good at it. All the best. Please tell your other colleagues too. Its a very very common mistake.

    • @varsitybyzerodha
      @varsitybyzerodha  Před rokem

      Thank you for pointing it out. It's a verbal typo, will be more careful in the future.

  • @Rockstar_london
    @Rockstar_london Před 2 měsíci

    yadnya missing you, left with only boys and men ha ha