Bonus Share Adjustment Calculator is a simple and easy to use tool for investors. If the companies’ issues bonus shares, then after closing out time, the share price adjusts in the market to reflect the increased number of shares.
Bonus Share Adjustment Calculator
Use this Bonus Share Adjustment Calculator to calculate the new adjusted share price after a company issues bonus shares. This tool follows the standard bonus share adjustment formula and works for investors in Nepal and worldwide.
Details:
| Market Price (Before Book Closure) | – |
| % of Bonus Share | – |
| Market Price after Bonus Adjustment | – |
How Bonus Shares Are Calculated?
The bonus share adjustment formula is:
Adjusted Price = (Market Price × Old Shares) ÷ (Old Shares + Bonus Shares)
For example, if the share price is NPR 1,000 and the company issues a 20% bonus share, the new adjusted price will be NPR 833.33.
This bonus share price adjustment calculator is helpful for investors in Nepal and globally to understand how bonus share adjustment works.
Use our free too to know adjustments of bonus share. Before buying the bonus share company to understand the adjustments price of share. Is it profitable or not based on value discounting of related share of the company.
For the new investors, bonus may be attractive or motivators of buying share but it needs to be checked with this calculation and their market price.
Most of the investors are unknown about the adjustment and calculation. Thus, this adjustment calculator is useful. It supports you to know the actual new adjusted share price of share after applying adjustment formula.
How to use Bonus Share Adjustment Calculator ?
Using Bonus Share Adjustment Calculator, it is simple and easy. To use it, you need to follow the steps by steps process:
- Enter the Market Price (Before Book Closure) into the box.
- Write the percentage of Bonus Share into the box.
- Click on Calculate.
- You will get results details. That can use to take decision.
What is a Share Adjustment Calculator ?
A Share Adjustment Calculator is a simple online tool. It helps you to know the price after bonus share adjustments. After the distribution of the bonus shares by company, the number of shares will be increased, but the company market capitalization is same. Thus, the price of the share should be adjusted.
Example:
- If you have 200 shares of a company which price is RS.300 each, the company announced the 30% bonus share, then you will get 60 extra shares. Thus, you have 260 shares in total, but price of share will adjust to Rs. 230.77 each.
This adjustment can be easily calculated by using the above calculator. If the market is uptrend, then, such adjustment benefited to investor and second, the price is not so high of share, then, it is also best to buy such shares but if the shares price is already very high, then, it is not profitable even the bonus share is so good.
Bonus Share Adjustment Formula
For calculating, the most commonly used the bonus share adjustment formula is as follows:
Share adjustment Price = (Market Price of Share x Number of Old Shares) ÷ (Old Shares + Bonus Shares)
For Example:
- Market Price of Share = Rs.1500
- Bonus Share = 30%
- Old Shares = 100
- Bonus Share = 30
Share Adjustment Price = (1500 X 100) ÷ (100+30) = 150000÷130 = Rs. 1153.85
Thus, the new adjustment share price is Rs.1153.85 per share.
Bonus Share Calculation Formula in Nepal
The following Bonus Share Calculation Formula in Nepal is commonly used.Bonus is a part of profit of company that is decided by Company’s general assembly.The bonus share calculation formula in Nepal is followed the same international standard and guidelines.
Bonus share calculation = (Old shares x Bonus percentage) ÷ 100
For example:
- If you have 100 shares of a company
- Company provides a 20 % bonus share
- Then, Bonus shares = 100 x30% = 30 shares
- Total shares = 100 +30 = 130 shares.
Thus, the number of shares is increased but adjusted shares price decreases in this condition.
How to calculate profit sharing bonus
Some of the company provides the profit sharing bonuses to employees as per law. The generally the profit sharing bonus is calculated as follows:
Bonus = (Profit x Bonus Percentage) ÷100
For Example:
- Company profit = Rs.15,00,000
- Bonus sharing rate = 10%
- Bonus for employees = 1500,000×10% = Rs.1,50,000
This amount is distributed among employees according to company policy and guidelines.
Why use a bonus adjustment calculator ?
A bonus adjustment calculator saves time and provides accurate results for investors. It is useful because of:
- It calculates quick adjusted share price
- It is easy to understand bonus share adjustment.
- It supports in planning future investments strategies
- It avoids confusion in trading and portfolio valuation.
Way Forward
We would like to recommend the following way forward for investors:
- Share adjustment calculator helps investors to find the new share price after distribution or book close.
- The bonus share adjustment formula is based on the ratio of old to new shares.
- In Nepal, the bonus share adjustment formula is used to widely in share markets.
- Knowing how bonus shares are calculated and using a bonus adjustment calculator, it makes easy to decide for investors.
- Companies also provide profit sharing bonuses which are calculated separately from share adjustments.
Conclusion
As an investor, bonus share adjustments are needed to understand to take decisions in the market. Using a bonus share adjustment calculator, you can know your adjusted share price, and stay confident in your investment decisions. If you are an investor in Nepal’s stock market, or anywhere else in the world, this calculator and skill will help you manage your portfolio better with maximizing profit and take right decision in the stock market.
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