@@sudhirgotwal7784 I think the reply from @smallcase is correct, but not complete.......it's true that you can buy as little as 1 share and be eligible for the dividend.......as long as you purchase by a specified date. When a company announces a dividend, the stock exchange will announce the Ex-Dividend Date.....in order to be eligible for the dividend, you must buy the shares at any time prior to that date. Michael Simmons - author 'Corporate Actions - a Guide to Securities Event Management'.
Hi, Looks like the split ratios u have used in stock split and reverse split is wrong. It should have been 2:1 in split, which mean If you owned 1 share before the split, you would now own 2 shares after the split and vice versa in reverse split. Correct me if I am wrong.
Very well explained everything but one suggestion please make proper presentation for example you directly started explaining dividend rather than explaining corporate action and it's main two types like mandatory and voluntary and then their subtypes etc .
@@mr.pavanvlogindia8646 A straightforward Cash Dividend is a mandatory event in which the shareholder is NOT offered a choice (e.g. to take additional shares instead of cash) by the company. However, some companies offer 'optional' dividends (e.g. a Dividend Reinvestment Plan - DRiP), in which the company announces a cash dividend but with an option for the shareholder to elect to receive shares (which are purchased with the cash value of the dividend for that shareholder). The company will announce a DRiP with a deadline by which the shareholder must communicate that it wishes to receive shares.....if the shareholder chooses shares. Michael Simmons - author 'Corporate Actions - a Guide to Securities Event Management'.
I think the explanation of bonus issue is not correct. Total value changes, doesn't remain same. Else what is the benefit to investors? Pls correct me if I'm wrong
The primary underlying purpose for a company to announce a Bonus Issue is to reduce the market price of its shares....which is designed to encourage individual investors to purchase shares and to increase the number of shares in issue. In a bonus issue, the company issues addtional shares to existing investors, free of cost. The fact that there is no payment for these additional shares - whether from company to shareholders, or from shareholders to the company, means that the total value of the company in the marketplace CANNOT change. For example, assume that prior to the bonus issue the company has 10,000,000 shares in issue, which have a market price of GBP10.00 per share - therefore total market value of GBP100,000,000.00.....then the company issues a 1:1 (1 new share for each existing share) Bonus Issue to existing shareholders. After the Bonus Issue, the number of shares will be double what it was (now 20,000,000 shares) - but because there has been no payment of capital, the company's value in the marketplace cannot change and so remains at GBP100,000,000.00.....that means the market price of each share has to adjust to GBP5.00 per share. A similar corporate action in which the market price of the company's shares will remain at a similar level after the event as it was before, is a Rights Issue. This is a capital raising event, in which the company offers existing shareholders the opportunity to purchase additional shares at an offer price which is at a slight discount to the current market price (thereby encouraging the existing shareholders to subscribe). In a rights issue, there IS payment of capital (shareholder pays the company)....and that results in the company's total market value increasing, and the total number of shares increasing......therefore only a slight adjustment to the market price of the shares. I hope this helps. Michael Simmons - author 'Corporate Actions - a Guide to Securities Event Management'.
Sir just imagine a company give bonus share 1:1. I have 100 share and then I got another 100 share. I want to sell that bonus share in which price I can sell .
Assuming the Bonus Issue shares are issued with the same rights as the existing shares - they will immediately merge and become 1 class of share......the market price after the event will be reduced by 50% (in a 1:1 Bonus Issue). So you would be able to sell the Bonus shares at the adjusted (lower) price. Michael Simmons - author 'Corporate Actions - a Guide to Securities Event Management'.
Wrong info!! It's not ex date.. You need to be a shareholder by record date and not ex date.. Going by current t+2 cycle.. You need to buy shares one day prior ex date.. Given no holidays in between.
To clarify the difference between Ex-Date and Record Date. To be ELIGIBLE for the dividend an investor must purchase with a Trade Date at any time before the Ex-Date. The company pays all shareholders that are on their Register of Shareholders by close-of-business on Record Date (regardless of knowing whether seller or buyer is entitled to the dividend). An investor can be ELIGIBLE for the dividend, but not necessarily be PAID the dividend by the company (due to a delay in the settlement process)....under those circumstances the company will pay the seller (who is not entitled to the dividend)......in which case the buyer will need to claim the dividend from the seller. Michael Simmons - author 'Corporate Actions - a Guide to Securities Event Management'.
Please enable English subtitles if you wish to watch the video with them.
If you have any queries, feel free to comment and ask :)
Thnx u sir bht acha ap smjaye 🙏🏻🙏🏻
Ek no. 💯👌
Nicely explained. Thanks.
Could you please tell me what Corporate Action Mechanism should be there for transfer of AIF III units?
Thanks for the explanation. It's really good.
Thank you sir it's really helpful video 😊👍
Hey Ruchi, Glad you liked the video. Do explore other videos on our channel to learn more about stock investments 😃
Thanku so much very easy to understand
Very useful information
Thank you
Thanku for information.. You using simple language and explanation wow great.. Its easy to learning 👌👌👌😊😊
Can you plz share notes for this topic..
Very useful video thanks
Very helpful
Glad you think so Mohini. Keep watching more videos :)
Awesome sir 👍
Hey shubham , Glad you liked the video. Do explore other videos on our channel to learn more about stock investments 😃
Can you make video on effect of corporate action on futures contract... And on options contract...
Good Information
Hey Mukesh Sanghani, Glad you liked the video. Do explore other videos on our channel to learn more about stock investments.
Sir what is take over , plz explain
Takeover is a company acquiring other company, we have covered that in video during end :)
@@smallcase thnk u...bt i skipped last 2 min of this vdo🤣
@@3ashutoshdash558 The end is always the charm :)
good
While selling each basket one dp charge is applicable or dp charge*no stocks? Please clarify
Hey Nikunj - DP charges are applicable per stock sold (irrespective of the number of shares) in a day and not per basket.
Sir , how much shares I need to buy of a particular company to be eligible for dividend??
You just need to have 1 share . The dividend is given per share so even if you have 1 share, you are eligible to get dividend.
@@smallcase thanks for the information 👍
@@sudhirgotwal7784 I think the reply from @smallcase is correct, but not complete.......it's true that you can buy as little as 1 share and be eligible for the dividend.......as long as you purchase by a specified date. When a company announces a dividend, the stock exchange will announce the Ex-Dividend Date.....in order to be eligible for the dividend, you must buy the shares at any time prior to that date.
Michael Simmons - author 'Corporate Actions - a Guide to Securities Event Management'.
SIR,
CORPORATE ACTION KITNE DIN PAHLE MONEYCONTROL PAR SHOW HORA HAI...
KYA AAGE 3 MONTH TAK DATA DEKH SAKETE HAIN IN CORPORATE ACTION KA ??
Hi,
Looks like the split ratios u have used in stock split and reverse split is wrong. It should have been 2:1 in split, which mean If you owned 1 share before the split, you would now own 2 shares after the split and vice versa in reverse split. Correct me if I am wrong.
Thanks man it's really helpful.. 👍🏻👏🏻
Very useful video i must say 👍
Glad it was helpful for you Dolly. Do check out our other videos to know more :)
Very well explained everything but one suggestion please make proper presentation for example you directly started explaining dividend rather than explaining corporate action and it's main two types like mandatory and voluntary and then their subtypes etc .
I have a question. If my Income is below 2,50,000 do i have to pay STCG on every sell of shares? If yes, then how to pay and where to pay?
Is dividend mandatory?
Yes, it is mandatory corporate actions
@@mr.pavanvlogindia8646 A straightforward Cash Dividend is a mandatory event in which the shareholder is NOT offered a choice (e.g. to take additional shares instead of cash) by the company. However, some companies offer 'optional' dividends (e.g. a Dividend Reinvestment Plan - DRiP), in which the company announces a cash dividend but with an option for the shareholder to elect to receive shares (which are purchased with the cash value of the dividend for that shareholder). The company will announce a DRiP with a deadline by which the shareholder must communicate that it wishes to receive shares.....if the shareholder chooses shares.
Michael Simmons - author 'Corporate Actions - a Guide to Securities Event Management'.
I think the explanation of bonus issue is not correct. Total value changes, doesn't remain same. Else what is the benefit to investors? Pls correct me if I'm wrong
The primary underlying purpose for a company to announce a Bonus Issue is to reduce the market price of its shares....which is designed to encourage individual investors to purchase shares and to increase the number of shares in issue.
In a bonus issue, the company issues addtional shares to existing investors, free of cost. The fact that there is no payment for these additional shares - whether from company to shareholders, or from shareholders to the company, means that the total value of the company in the marketplace CANNOT change. For example, assume that prior to the bonus issue the company has 10,000,000 shares in issue, which have a market price of GBP10.00 per share - therefore total market value of GBP100,000,000.00.....then the company issues a 1:1 (1 new share for each existing share) Bonus Issue to existing shareholders. After the Bonus Issue, the number of shares will be double what it was (now 20,000,000 shares) - but because there has been no payment of capital, the company's value in the marketplace cannot change and so remains at GBP100,000,000.00.....that means the market price of each share has to adjust to GBP5.00 per share.
A similar corporate action in which the market price of the company's shares will remain at a similar level after the event as it was before, is a Rights Issue. This is a capital raising event, in which the company offers existing shareholders the opportunity to purchase additional shares at an offer price which is at a slight discount to the current market price (thereby encouraging the existing shareholders to subscribe). In a rights issue, there IS payment of capital (shareholder pays the company)....and that results in the company's total market value increasing, and the total number of shares increasing......therefore only a slight adjustment to the market price of the shares.
I hope this helps.
Michael Simmons - author 'Corporate Actions - a Guide to Securities Event Management'.
What is existing shareholder ?
An investor that is the current owner of shares.
Sir just imagine a company give bonus share 1:1. I have 100 share and then I got another 100 share. I want to sell that bonus share in which price I can sell .
At cmp price
Assuming the Bonus Issue shares are issued with the same rights as the existing shares - they will immediately merge and become 1 class of share......the market price after the event will be reduced by 50% (in a 1:1 Bonus Issue). So you would be able to sell the Bonus shares at the adjusted (lower) price.
Michael Simmons - author 'Corporate Actions - a Guide to Securities Event Management'.
👍👍
Wrong info!! It's not ex date.. You need to be a shareholder by record date and not ex date.. Going by current t+2 cycle.. You need to buy shares one day prior ex date.. Given no holidays in between.
To clarify the difference between Ex-Date and Record Date. To be ELIGIBLE for the dividend an investor must purchase with a Trade Date at any time before the Ex-Date. The company pays all shareholders that are on their Register of Shareholders by close-of-business on Record Date (regardless of knowing whether seller or buyer is entitled to the dividend). An investor can be ELIGIBLE for the dividend, but not necessarily be PAID the dividend by the company (due to a delay in the settlement process)....under those circumstances the company will pay the seller (who is not entitled to the dividend)......in which case the buyer will need to claim the dividend from the seller.
Michael Simmons - author 'Corporate Actions - a Guide to Securities Event Management'.
Use English language
Which is universal language
Waste fellow he is not speaking english