100% Bonus Shares Diye Company? Iska Kya Matlab?

Abdul Rehman Najam • 1 day ago

Original source

What This Video Is About

The video discusses the concept of bonus shares and split shares, explaining how they work and their impact on the market. The speaker uses examples to illustrate the difference between bonus shares and split shares, and how they affect the company's profit and share price.

Major Ideas Discussed

  • Bonus shares and split shares increase the number of shares, but the company's profit remains the same.
  • The market reacts positively to split shares, as they make the stock more accessible to retail investors.
  • The overall fair value of the company is not significantly affected by bonus shares or split shares.
  • The speaker uses the example of Apple to illustrate how split shares can make a stock more accessible to new investors.
  • The psychological impact of split shares on the market is small but positive.
  • The speaker explains that the government of Pakistan has applied tax on bonus shares, which is why they are now referred to as split shares.

What to Watch Next

Investors should monitor how companies use bonus shares and split shares to make their stocks more accessible to retail investors, and how this affects the overall market.