A flat correction differs from a zigzag in that the subwave sequence is 3-3-5, as shown in Figures 1 and 2. Since the first actionary wave,

Fibonacci studies: arcs, fans, retracements, and time

Overview: Leonardo Fibonacci was a mathematician who was born in Italy around the year 1170. It is believed that Mr. Fibonacci discovered..


The Negative Volume Index (“NVI”) focuses on days where the volume decreases from the previous day. The premise being that the “smart money” takes positions on days when volume decreases

Basic Technicals

MACD technical analysis MACD technical analysis stands for moving average convergence/divergence analysis of stocks.

Fundamental Analysis

Doubling Stocks Review: Is this a scam? If you are looking for the truth about doubling stocks this is a necessity. One always thought there was something wrong with a doubling of stocks.

Wednesday, December 28, 2011

Difference between stock split and bonus?

Recently a question was posted to explain the Difference between stock split and bonus
Since its a Topic which everybody should understand,I am giving a detailed analysis on the subject.
First before Giving Any Difference lets know the Similarity.

Assume a Share is trading at Rs 100 and it issues 1 bonus Share for every one share held or it spilts the stock in two.Theoretically it will trade at Rs 50 after bonus or Split.practically it may trade at Rs 40 or Rs 60Depending on market conditions in Both Cases no of Shares will Double and net worth will remain the Same.

A bonus is a free additional share that is given to you without changing any face value. A stock split is the same share split into two.so think like this you have 100 rs and then you are taken that 100 rs and given 2 Fifty Rupees , you might have 2 counts now but the worth is same as 100 rs , but in case of Bonus you are given a extra 100rs .

In a stock split, the number of shares increases but the face value drops. The face value never changes for a bonus shares.