Search for an answer or browse help topics
What is a Stock Split? A stock split is a corporate action where a company increases the number of outstanding shares by reducing the face value of each share. Companies generally implement stock splits to improve liquidity and make shares more affordable for investors. Although the share price decreases after a split, the total investment value remains the same. The newly split shares are usually credited to the investor’s Demat Account within 2 days. Example Scenario If a stock with
Read More
What is consolidation of shares? Consolidation of shares, also known as a reverse stock split, is a corporate action where a company reduces the number of its outstanding shares by merging multiple shares into one while increasing the face value per share. This process does not change the overall value of a shareholder’s investment. Companies typically notify shareholders via email before executing a share consolidation. Example Scenario Let’s say Mr. A holds 10,000 shares of a company, each valued at
Read More
Impact of a Bonus Issue on Equity Holdings and F&O Positions A bonus issue is when a company distributes additional shares to existing shareholders at no extra cost. The number of new shares is issued in a specific ratio, such as 2:1, meaning shareholders receive two bonus shares for every one share they own. Impact on Equity Holdings The share price adjusts downward based on the bonus ratio, but the overall value of holdings remains unchanged. RMoney displays the bonus
Read More
Why are split shares not visible in the holdings? When a stock undergoes a split, the new shares may take up to two working days from the ex-date or record date to be credited to the Demat Account during this period, the split shares will not be visible in your holdings. As a result: Your Profit & Loss (P&L) statement may show an artificial decrease in profits or an increase in losses until the new shares are credited. Once the
Read More
Impact of Mergers and Spin-Offs on Shares Introduction Mergers and spin-offs are significant corporate actions that can affect a company’s stock price and shareholder value. A merger happens when two companies combine to form a single entity, while a spin-off occurs when a company separates a division into an independent business. These events impact shareholders in different ways, influencing stock prices, ownership structure, and future growth potential. Impact of Mergers on Shares In a merger, shareholders of the acquired company
Read More
Bonus shares are the additional shares offered by a firm to its existing shareholders as a “bonus”. This is done when the company is not in a position to pay dividends to its shareholders despite earning decent profits for that particular quarter. Allotments are typically made in a fixed ratio e.g. 1:1, 2:1, 3:1, etc. A 2:1 bonus ratio means the existing shareholders (as on the record date) will get 2 additional shares for every 1 share held at zero
Read More
A stock split is one of the ways of increasing retail participation and is a quite common phenomenon in the stock market. A stock split is a firm’s process of dividing the existing shares into multiple shares to increase the number of outstanding shares held by a company. An illustration will make things clear: Split Ratio Old FV No of the shares held before split Share Price before split Investment Value before split New FV No. of shares held after
Read More
Issuing rights shares is yet another way companies turn to, for raising the required capital. Through a rights issue, companies grant shareholders the rights, but not the obligation, to buy new shares. Shareholders get the new shares at a discounted market price in proportion to their existing shareholding. Why Do Companies Go For Right Issues? Companies need capital for expansion and hence turn to the issue of shares. Instead of issuing shares to the public at large and diluting the
Read More
Share buyback/ repurchase is when a company buys back its own shares from the existing shareholders. Share Buyback is an alternative, tex efficient way to return money to shareholders. There are two ways to buyback shares: Companies can buyback shares from the open market over an extended time period, or they may present a tender offer to shareholders. Here, shareholders have an option to submit (or tender) a portion or all of their shares within a certain time frame at
Read More
An Offer For Sale (OFS) is an easier way to sell shares through the exchange platform for listed businesses. It is a simpler method where the promoters of public companies can sell their shares and reduce their holdings. Anyone including retail investors, FIIs (Foreign Institutional Investors), companies, and Qualified Institutional Buyers (QIBs) can bid on these shares. The OFS facility is available on the BSE and NSE. Only the top 200 companies by market capitalization in any of the four
Read MoreTo know about our offerings - Demat, Shares, Mutual Funds, IPOs, Insurance, Commodities and more…
Get started today to really enjoy your trading experience. Fill in your details, connect your bank account & upload your documents.
Ensure the security of your investments by updating your nominee details in your trading & demat account online. It’s quick and hassle-free!
📌 Act Now to Stay Compliant
For assistance, contact our Customer Care at 0562‑4266666 and email askus@rmoneyindia.com.
IT'S TIME TO HAVE SOME FUN!
Your family deserves this time more than we do.
Share happiness with your family today & come back soon. We will be right here.
Investment to ek bahana hai,
humein to khushiyon ko badhana hai.
E-mail
askus@rmoneyindia.com
Customer Care
+91-9568654321
