Bonus share vs. Stock split

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

Пікірлер: 86

  • @jashankumar4700
    @jashankumar470010 ай бұрын

    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 Жыл бұрын

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

  • @nikhil11vtx
    @nikhil11vtx8 ай бұрын

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

  • @rupam39
    @rupam3910 ай бұрын

    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🙏🙏🙏🙏

  • @osmreview
    @osmreview Жыл бұрын

    My favourite teacher lot’s of respect 🙏

  • @SaregamapavanN
    @SaregamapavanN4 ай бұрын

    Absolutely amazing knowledge sharing, kudos to khurana g 😊

  • @ask2malik
    @ask2malik6 ай бұрын

    Thanks for making it very simple to understand.

  • @meenakshitripathi9720
    @meenakshitripathi9720 Жыл бұрын

    Informative...well presented 👍

  • @krashish1
    @krashish1 Жыл бұрын

    Explained in perfect manner..

  • @mrajesh1947
    @mrajesh194711 ай бұрын

    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-hz9xh6 ай бұрын

    superbbbb explanation mam amazing very well done

  • @amarkantkumar4233
    @amarkantkumar423310 ай бұрын

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

  • @brijmeena8081
    @brijmeena808111 ай бұрын

    Thanks for informative videos ❤

  • @prashanttripathi5179
    @prashanttripathi51799 ай бұрын

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

  • @swapnilsapkal2391
    @swapnilsapkal23915 ай бұрын

    Amazing content, in simple language

  • @abhishekparjane8276
    @abhishekparjane8276 Жыл бұрын

    Please Continue this series in hindi👍

  • @achalnagar724
    @achalnagar724 Жыл бұрын

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

  • @cliffordrodrigues9159
    @cliffordrodrigues91599 ай бұрын

    Insightful, Thanks

  • @stockwonders
    @stockwonders2 ай бұрын

    Nicely explained

  • @GATExpresso
    @GATExpresso10 ай бұрын

    Great initiative by zerodha for learners . Thank you

  • @anirudh123cool
    @anirudh123cool Жыл бұрын

    Well explained

  • @AkashSingh-je5nm
    @AkashSingh-je5nm Жыл бұрын

    Well explained mam

  • @Tinku1786
    @Tinku178611 ай бұрын

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

  • @navanu100
    @navanu1005 ай бұрын

    Good show

  • @zaid_ahmad_
    @zaid_ahmad_Ай бұрын

    Ma'am you're amazing 👏

  • @amrit1144
    @amrit11445 ай бұрын

    Thank you ji

  • @mookam8888
    @mookam888819 күн бұрын

    Thank u

  • @guptaabhishekh3879
    @guptaabhishekh387910 ай бұрын

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

  • @simpletutorial4123
    @simpletutorial41239 ай бұрын

    good teacher

  • @anishagrawal6276
    @anishagrawal62763 ай бұрын

    MADAM U R GREAT

  • @pradeepkumar-ho7ce
    @pradeepkumar-ho7ce11 ай бұрын

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

  • @ayurvedwithrakesh
    @ayurvedwithrakesh5 ай бұрын

    Good ❤

  • @AB12395
    @AB123955 ай бұрын

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

  • @anirban3190
    @anirban3190 Жыл бұрын

    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.

  • @pradeepsingh-mh7ir
    @pradeepsingh-mh7ir4 ай бұрын

    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.🙂

  • @brijmeena8081
    @brijmeena808111 ай бұрын

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

  • @pankajagarwal1738
    @pankajagarwal17389 ай бұрын

    Dono case me book value par kya impact hoga

  • @AbhishekKumar-uv7kq
    @AbhishekKumar-uv7kq11 ай бұрын

    Upload more videos regularly.

  • @hrishabhjoshi5847
    @hrishabhjoshi5847Ай бұрын

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

  • @neha4mrs
    @neha4mrs11 ай бұрын

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

  • @vimalak
    @vimalak5 ай бұрын

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

  • @ankitp787
    @ankitp7874 ай бұрын

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

  • @RajeshChakravarti-il6vh
    @RajeshChakravarti-il6vhАй бұрын

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

  • @randomvideo6
    @randomvideo64 ай бұрын

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

  • @ramsakal8290
    @ramsakal829011 ай бұрын

    Liquidity increase karke company ko kya profit hota hai.?

  • @kashish6733
    @kashish6733 Жыл бұрын

    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

    Жыл бұрын

    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.

  • @shivammishra5730
    @shivammishra57306 ай бұрын

    but how investors gets benifits from bonus

  • @Mr.versatile529
    @Mr.versatile52910 ай бұрын

    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

  • @rajendranpj7778
    @rajendranpj777810 ай бұрын

    Excellent video I was searching for 😊

  • @arpitjhalani8227
    @arpitjhalani82276 ай бұрын

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

  • @Akshaykumar-tl4re
    @Akshaykumar-tl4re10 ай бұрын

    Hello mam stop loss ke upper video

  • @sidhnathmishra7896
    @sidhnathmishra78962 ай бұрын

  • @user-jf5kg8xg1f
    @user-jf5kg8xg1f Жыл бұрын

    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

    Жыл бұрын

    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

    Жыл бұрын

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

  • @varsitybyzerodha

    @varsitybyzerodha

    Жыл бұрын

    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

    Жыл бұрын

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

  • @ashutoshgupta321

    @ashutoshgupta321

    10 ай бұрын

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

  • @unique_mzn
    @unique_mzn Жыл бұрын

    Please upload every chapters lecture in hindi

  • @varsitybyzerodha

    @varsitybyzerodha

    Жыл бұрын

    Hi, we'll look into the possibilities, thanks!

  • @pravinnavlakhe3871
    @pravinnavlakhe38719 ай бұрын

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

  • @varsitybyzerodha

    @varsitybyzerodha

    9 ай бұрын

    Hi Pravin, the credit of bonus shares takes up to 15 days from the record date.

  • @pravinnavlakhe3871

    @pravinnavlakhe3871

    9 ай бұрын

    Thank you

  • @sudarshansharma3945
    @sudarshansharma3945 Жыл бұрын

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

  • @varsitybyzerodha

    @varsitybyzerodha

    Жыл бұрын

    Hi, we're looking into creating content in other languages too. We'll keep you posted.

  • @ashutoshgupta321

    @ashutoshgupta321

    10 ай бұрын

    😂😂

  • @nirajdesai2291
    @nirajdesai229110 ай бұрын

    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

  • @vinayrashivadekar5654
    @vinayrashivadekar56545 ай бұрын

    9:05 eye 👁️👁️ opening calculation

  • @hussam2152
    @hussam21523 ай бұрын

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

  • @gouthamchunduru
    @gouthamchunduru Жыл бұрын

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

  • @varsitybyzerodha

    @varsitybyzerodha

    Жыл бұрын

    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

    Жыл бұрын

    @@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

    Жыл бұрын

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

  • @gouthamchunduru

    @gouthamchunduru

    Жыл бұрын

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

  • @gouthamchunduru

    @gouthamchunduru

    Жыл бұрын

    @@varsitybyzerodha pls help me understand above🥲

  • @omkar_03_
    @omkar_03_ Жыл бұрын

    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

    Жыл бұрын

    I hope you are talking about options premium. To understand the Impact of bonus and split on F&O do check out the video- kzread.info/dash/bejne/f4xhmNSdeKe2kqg.html

  • @omkar_03_

    @omkar_03_

    Жыл бұрын

    @@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

    Жыл бұрын

    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

    Жыл бұрын

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

  • @vincentpinto1127
    @vincentpinto1127 Жыл бұрын

    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

    Жыл бұрын

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

  • @Rockstar_london
    @Rockstar_london2 ай бұрын

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

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