The record date determines your eligibility for a corporate action and the timing of your purchase relative to it matters. If you buy before the ex-date — Your purchase settles in time for you to be on the shareholder register by the record date. You are eligible for the bonus, […]
Are There Any Taxes on Bonus Shares?
Bonus shares are not taxed when they are credited to your account. Since you’re not paying anything to receive them, there is no income tax at the time of allotment. However, taxes apply when you sell them. How capital gains tax works on bonus shares The cost of acquisition for […]
Do Bonus Shares Affect the Stock Price?
Yes, and the adjustment is automatic. When bonus shares are issued, the stock price drops proportionally on the ex-bonus date to account for the increased number of shares in circulation. If a stock is trading at ₹500 and the company announces a 1:1 bonus, the price adjusts to approximately ₹250 […]
What Are Bonus Shares?
Bonus shares are additional shares that a company gives to its existing shareholders at no cost. You don’t pay anything, the shares are credited to your DEMAT account automatically based on how many shares you already hold. For Example : The company announces a bonus ratio for example, 1:1 or […]
Why Do Some Shareholders Not Receive Dividends?
Even if a company declares a dividend, not every shareholder automatically receives it. There are a few common reasons why the payment may not reach you. You bought the shares on or after the ex-dividend date This is the most common reason. If you purchased the shares on or after […]
How Do I Receive My Dividend?
In India, dividends are paid directly to your linked bank account not to your DEMAT account. Companies use ECS or NEFT to transfer the amount automatically on the payment date. You don’t need to do anything. Before the payment date, make sure: Your bank account is correctly linked to your […]
What Is the Ex-Dividend Date, Record Date, and Payment Date?
When a company announces a dividend, it sets three important dates. Understanding these tells you whether you’re eligible to receive the dividend and when the money will reach you. Record Date – The company fixes a record date to determine which shareholders are eligible for the dividend. If your name […]
How Is Dividend Calculated for My Holdings?
The calculation is straightforward. Once a company declares a dividend per share, you multiply that by the number of shares you hold on the record date. Formula Dividend Amount = Dividend per Share × Number of Shares Held Example A company declares a dividend of ₹5 per share. You hold […]
How Often Are Dividends Paid?
There is no fixed schedule that all companies follow. Each company decides when and how often to pay dividends based on its financial performance and cash position. Interim Dividend – Paid once or more during the financial year, usually after a strong quarterly result. Final Dividend – Paid once, after […]
What Is a Dividend?
A dividend is a portion of a company’s profits that it distributes to its shareholders. It is one of the ways a company rewards you for holding its stock. Not every company pays dividends. Companies that are still in a growth phase typically reinvest their profits back into the business. […]
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