Dont miss action in these stocks that turn ex-bonus this week!

Bonus issue of shares enhances the liquidity of shares, thereby increasing the participation of investors and traders

A listed company issues bonus shares due to free reserves & surplus and to add fresh capital.

A stock bonus issue implies that an investor receives additional shares to the extent of the specified proportion. The additional shares are allotted without any consideration, that is, free of cost. 

By issuing bonus shares, the number of outstanding shares increases with a proportional decrease in the value of each share ensuring no change in the market capitalization. However, the face value of the shares remains the same post bonus issue.

Bonus issue is preferred by companies as an alternative to giving out dividends. It also enhances the liquidity of shares, thereby increasing the participation of investors and traders. 

Following is the list of stocks that will turn ex-bonus this week!