Thread: Zenith Bank
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Old 3rd March 2012, 04:34 PM
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Default Re: Zenith Bank

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..
I understand what you re saying, but atimes after marking down a stock for bonus and dividend, it goes back to its price range b4 the bonus, and probably it might not have passed that same price range if there was no bonus. So in this case however is holding the stock has gained.
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