A bonus issue is a corporate action through which the company issues more shares to the existing shareholders from its stored equity capital. The share price gets changed based on the bonus issue ratio but face value remains unchanged even after the bonus issue. Benefits and characteristics Divides more equity capital at the face value […]Continue Reading... No Comments.
A stock split is a corporate action through which the existing shares of a company are split into smaller denominations so that the number of shares increases. The face value and the share price get changed based on the split ratio but the total market value remains unchanged. Benefits and characteristics Reduce the share price […]Continue Reading... No Comments.
Market capitalization specifies the total market value of a listed company. For a listed company, it is calculated after multiplying the share price with the total number of shares. For privately held companies, the market capitalization can be calculated from the total asset value or the future cash flows to the firm. The calculation methodology […]Continue Reading... No Comments.