correct me if im wrong guys. but if a company issue bonus issue. it gives more liquidity to the company share and hence new investors will be more attracted to buy due to the lower ex price right?

but like one of the forummer here say.. usually bonus issue is used to cheat aunties aunties saying it's cheap when it is not for the existing share holder. because no impact?

If price now RM5. The day before ex div RM8. Ex div price it will fall below RM2.5. With bonus split 1:1, u will lose out right? Big boss can explain to me with figures why won't lose?

I keep thinking if the price don't increase drastically before bonus split. When split, price drop lower u will lose.

Right. Because if the bonus issue is 1:1, the price must increase above 100% (assuming the price drop 100% ex price) and u got 100% more share. Then the effect will be 0.

But if ur share increase 20%. U lose out 80%. Better don't split the share right. No guarantee bonus issue (increase liquidity) will attract more new investors right?

Any stock u come across where after bonus split it loses a lot of money for existing shareholder?

Okay. I got what u mean now.

So even after bonus share have been issued, there shouldn't be any price adjustment at all? If the answer is yes, my wealth would just have doubled. Because I got extra 100% share.

Yup. That is why if during ex price if it fail to rise above 100%. When it halved, u will lose out. U have 100% more share but your share price is below 100% of your original cost

yes ideal situation.

scenario: u buy at 1.1. u hold 1000 share. cost is RM1,100.

bonus issue 1:1

share price increase to 1.50. market value now is RM1,500.

after bonus issue. u got 2000 share. share price drop 50% (75 cent)

now your investment is worth RM0.75 x 2000 shares = RM1,500.

question: yes. u are right. bonus issue does not affect share price. people determine share price. but wouldn't it better sometimes that don't want bonus issue. then maybe your share price will be higher?

No, wait. U won't know.. Because bonus issue happen. So u won't know what's the situation if dont have bonus issue.


but what if bonus issue, but the price remain unchanged.

meaning buy 1.1. 1000 share. cost is RM1,100.

bonus issue 1:1

share price now is RM1.15 only. rise 5 cent.

after bonus issue u got 2000 units. IF SHARE PRICE DROP MORE THAN HALF? RM0.5 (for example) x 2000 units = RM1,000. u lose RM100 in the end.. ideally it should drop half right? but like u said, market determine the share price.