Process Behind Price Markdown

[udus]

This forum is a revelation i am impressed with the analysis,i would like to be informed on how/why a stock is marked down the maths behind it,and if it is an global pratice,gurus pls advice

[udus]

Originally Posted by udus

This forum is a revelation i am impressed with the analysis,i would like to be informed on how/why a stock is marked down the maths behind it,and if it is an global pratice,gurus pls advice

This forum is a revelation i am impressed with the analysis,i would like to be informed on how/why a stock is marked down the maths behind it,and if it is an global pratice,gurus pls advice

[olusolakemmy]

price is marked down anytime a bonus is issued and dividend is given.
take for example, a company selling for N10, and it give bonus share of 1 for 5, that is about 20%,the company will mark down the current price which is
N10 to N8, the same is applicable to dividend.

There is also a reconstruction in which case, a company want to reduce the volume of shares, then they can reconstruct to half just as access did sometime in january.
say you have 10000 unit, and the company is N3, after reconstruction, you will now have 5000unit whle the price go upto N6.
recopntruction is also done when merger or acquisition happen.

i hope i have helpin a way, you are sure to get lots of more advanced explanation on this site from other members