What is a bonus problem?
The bonus problem is an additional offer of shares that is extended to current shareholders. This type of further issue of shares, sometimes known as a problem of script or problem with capitalization, is sometimes used as a strategy to prevent the total dividend payout to shareholders. The number of shares offered is usually related to the number of shares already held by each shareholder.
When a company experiences a significant amount of undivided earnings, creating a bonus problem provides benefits for all involved. The company has the opportunity to earn these revenues into the shareholder's capital, while investors have the opportunity to obtain additional shares of shares. A similar set of benefits occurs when the company's assets are re -evaluated and other reserve funds are identified.
Since the issue of a bonus is usually calculated on the basis of the number of shares that each investor holds, shareholders are motivated to get more szyji before the next bonus problem are likely to be expanded. That again increaseIt is the shareholders' capital owned by the company, although it does not increase the amount of shareholders. This is because funding that supports shares is obtained by the transfer of funds from undivided earnings or reserves.
Business, which regularly expands the bonus problem for shareholders, also benefits in terms of public relations. Companies known to adhere to this strategy are often attractive to investors who like the idea of accepting something for free, based on what they already hold. Since the bonus problem is usually calculated on the basis of the number of shares that each investor has, investors are motivated to obtain shares of shares before expecting another bonus edition. Investors can identify businesses that use this strategy from Tim to time I examine history and the previous performance of the stock. Brokers usually also realize the companies that useThere are access to the problem with the script, and they can often inform investors if the company proves a promise to re -use this strategy in the near future.
While there are a number of ways to formulate the amount of bonus problem, one of the common methods is to provide each investor with one additional share for the set number of shares already owns. For example, the company may decide to structure a bonus problem, so each investor receives one share for every ten shares already held by the shareholder. The same formula can be used each time a new problem with capitalization is extended, or the company can evaluate the amount of additional reserves or undivided earnings and determine another method of providing additional shares.