Thread: Zenith Bank
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Old 3rd March 2012, 04:08 PM
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Default Re: Zenith Bank

Quote:
Originally Posted by goldsun View Post
look at it. Each time you're given bonus the price is corrected such that the value of your equity remain the same. Now without those bonus those stock would probably not be selling at this price. By giving bonus the outstanding share is increase and so there is more share to be traded which can move the price anyhow. Except companies that have small outstanding shares a company does you no good giving you bonus. To me giving bonus has make it difficult for me to compare the earning per share over financial years..
Exactly! I've long abandoned trying to explain this to people after all it's not in my interest to have a market full of intelligent investors. So to those who think bonus creates wealth for them I'd say "if it ain't broke don't fix it" but if you see bonus issues for what they truly are, then kudos to you.
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