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 Can anybody explain those Bonus to me, I am new , pls help !!

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TSdelpeiro
post May 1 2010, 12:49 PM, updated 16y ago

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I go to google read some explanation for below Bonus/Dividend etc nouns ,
for double confirm I am not misunderstand , pls help me to correct it if i am worng.

Let assume the STOCK Price is RM1.00 , and i have 1000unit , is the Stock Par Value is RM0.50

First & Final Dividend 10% T.E
== That means base on the Ex-date Stock Price RM1.00 , I can get the dividend RM1000 x 0.1 x 0.5 = RM50 (TE means no tax at all)

Interim Dividend 1 sen T.E
== That means I can get 1sen x 1000units = RM10 (No Tax)

First & Final Dividend 2.5 Sen T.E
== That means I can get 2.5sen x 1000units = RM25 (No Tax)

Final Single Tier Dividend 2.5 Sen
== That means I can get 2.5sen x 1000units = RM25 , but TAX 26% x RM25 = RM6.5 (Tier = TAX 26%?), Finally i get RM25-RM6.5 = RM19.5

Bonus Issue 1 : 1
== Means i get the another 1000units shares , but the price will divided by 2 ,
but i dont know how they decide when the stock price to divide?

Rights Issue 3 : 1
I am no idea what rights issues is @@

Share Split 2:
== Means my shares will split from 1000unit to 2000units too~
but the price still will divided by 2 , what different between Bonus Issue 1:1 ?

Thank you !!!!!!!!!!!


skiddtrader
post May 1 2010, 01:40 PM

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Joined: Jun 2007


QUOTE(delpeiro @ May 1 2010, 12:49 PM)
I go to google read some explanation for below Bonus/Dividend etc nouns ,
for double confirm I am not misunderstand , pls help me to correct it if i am worng.

Let assume the STOCK Price is RM1.00 , and i have 1000unit , is the Stock Par Value is RM0.50

First & Final Dividend 10% T.E
== That means base on the Ex-date Stock Price RM1.00 , I can get the dividend RM1000 x 0.1 x 0.5 = RM50 (TE means no tax at all)

Interim Dividend 1 sen T.E
== That means I can get 1sen x 1000units = RM10 (No Tax)

First & Final Dividend 2.5 Sen T.E
== That means I can get 2.5sen x 1000units = RM25 (No Tax)

Correct

Final Single Tier Dividend 2.5 Sen
== That means I can get 2.5sen x 1000units = RM25 , but TAX 26% x RM25 = RM6.5 (Tier = TAX 26%?), Finally i get RM25-RM6.5 = RM19.5

Single tier means already taxed at company level. So means you no need to deduct tax anymore, same like TE dividends.

Bonus Issue 1 : 1
== Means i get the another 1000units shares , but the price will divided by 2 ,
but i dont know how they decide when the stock price to divide?

Normally they will take 5 days closing price and average it, just before the price fixing date.

Rights Issue 3 : 1
I am no idea what rights issues is @@

Rights issue you can Google it or check Investopedia. Quite a lot to write.

Share Split 2:
== Means my shares will split from 1000unit to 2000units too~
but the price still will divided by 2 , what different between Bonus Issue 1:1 ?

Share splits means they are splitting the Par value of the stock. Example is your stock par value is RM0.50, they split it 1:1 and it becomes a RM0.25 par value stock. Thus since they split the stock in half, your stock price also split in half. Read more on Google and Investopedia.com.

Bonus issue is basically issuing new shares based on the retained profits of a company. By doing so, they increased the amount of shares and capital. Par value of stock remains the same, but since there are more shares, the stock price will divide itself according to number of shares. So if its Bonus issue 1:1, your share price will be cut in half like a stock split case above. Difference is par value not changed and amount of bonus shares are limited by retained earnings. 



Thank you !!!!!!!!!!!

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