Bonus Share Calculator
A bonus share is a free share issued by a company to its existing shareholders in a fixed ratio. Instead of giving cash dividends, companies issue additional shares as a reward to investors. For example, if a company announces a 1:2 bonus, it means shareholders will receive 1 bonus share for every 2 shares held.
Why Do Companies Give Bonus Shares?
Companies issue bonus shares for several reasons:
- Reward to Shareholders – A way to distribute profits without paying cash.
- Improve Stock Liquidity – Lower share prices attract new investors.
- Increase Retail Participation – More shares in circulation can lead to higher trading volumes.
- Positive Market Sentiment – Bonus announcements often boost investor confidence.
How to Use the Bonus Share Calculator?
Our Bonus Share Calculator on niftyfifty.in helps you quickly calculate your bonus shares & adjusted investment price.
Step 1: Enter the bonus ratio (e.g., 1 for 2).
Step 2: Input the total shares held before the bonus.
Step 3: Enter your investment amount .
Step 4: Click ‘Calculate’ to see: Bonus shares received Total shares after bonus New adjusted investment price per share
What is Ex-Date?
When Should You Buy Shares for a Bonus Issue? The Ex-Date is the date before which you must buy shares to be eligible for the bonus issue.
Key Dates: Record Date: The date on which the company finalizes eligible shareholders. Ex-Date: Usually one day before the Record Date.
To get bonus shares, you must buy the stock at least 2 days before the Record Date (T+1 settlement system).
Bonus shares are a great way to increase your holdings without additional investment. Use our Bonus Share Calculator to quickly determine how many bonus shares you’ll receive and your adjusted investment price. 🚀 Try the Bonus Share Calculator Now – Only on niftyfifty.in!