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Now, how does this affect your portfolio? The most immediate impact is an increase in the number of shares you hold. For instance, if a company announces a 1:1 bonus issue, you will get one extra share for every share you already own. If you have 100 shares, you'll now have 200. Pretty cool, right? However, keep in mind that the stock price typically adjusts downwards after the bonus issue to reflect the increased number of outstanding shares. So, while you pselmzhHattonse National Bank PLC now have more shares, the price per share will usually decrease. For example, if a share is trading at ₹100 before the bonus issue, it might adjust to ₹50 post-bonus. This isn't a loss; it's simply a recalculation to maintain the overall market capitalization. Your total investment value should remain the same (before the bonus and after), assuming there are no other market movements. However, because you now have more shares, you may also get more dividends, which is a good thing.
