Q&A, General question on stock market
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 Sep 13 2010, 05:34 PM
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#1
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All Stars
12,698 posts Joined: Jun 2010 From: kuala lumpur  
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QUOTE(cherroy @ Sep 13 2010, 03:53 PM) 2. No, has nothing to do with both. Company doesn't need to pay a single cent in the BI, just accounting issue only.   Then what's the difference between BI and share split? I always thought the company need to "pay something" for BI therefore BI is more valuable than share split.  |
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Sep 13 2010, 06:23 PM
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#2
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All Stars
12,698 posts Joined: Jun 2010 From: kuala lumpur
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QUOTE(cherroy @ Sep 13 2010, 05:46 PM) BI = Paid up capital increased which come from retained profit (a paper work), par value remains the same. So in this case, what makes the market (investors) prefer BI to share split? In Chinese, when a company offer BI, the word to use is "a gift".Share split = Par value stripped into half, and shares become more. But one thing same is that both doesn't affect any company fundamental issue, company doesn't need any cash/spend (except secretarial fee to carry out accounting practice  ),nothing material effect is changed. Got BI/share split or not doesn't affect the value of your shareholding. I think the key word here is what is paid-up capital. I am trying to read from the web and see what exactly it is. Thank you!  This post has been edited by yok70: Sep 13 2010, 06:54 PM |
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Dec 5 2010, 06:41 PM
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#3
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All Stars
12,698 posts Joined: Jun 2010 From: kuala lumpur
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QUOTE(smartly @ Dec 2 2010, 05:45 PM) ii) No, not a contra trade. 2 separate contracts coz 2 diff counters. Same conter buy sell same day then can.  |
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