Ex-Bonus

Ex-Bonus

Describing the sale of a stock in which a bonus issue that has been announced but not distributed remains with the seller. That is, the buyer does not receive the bonus when it is distributed even though she owns the stock. A bonus in this context is a free issue of shares given by the issuing company to current stockholders. This is also called ex-capitalization or ex-scrip.
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Stocks of Reliance Industries in ex-bonus transaction, was quoting higher by 0.
Hence, BBK shares shall trade ex-dividend and ex-bonus starting today, and the adjusted price after the distribution of bonus shares will be BD0.
In order to discourage tax avoidance in this area, it is proposed that bonus shares be treated as dividend and taxed deducted at the rate of 5% the ex-bonus price of the shares.
Srinivasan (1993) found extremely large positive abnormal returns on ex-bonus and ex-rights dates for the equity stocks.