Did your company just Split Shares?

Thought to do a separate post on share splits after getting a lot of comments/questions on this. see comments at http://taxingsalaried.blogspot.com/2009/10/what-is-bonus-share.html.So here is a humble try to explain what a share split is. What is a share split When a company splits its shares, it agrees to issue additional shares to the existing share holders, but it doesn't intend to issue new shares like in a Follow-on Public...

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Recession Over???

The last one and a half year has been like hell for every one. The economy of the entire world slowed down drastically forcing organizations to cut jobs and sending the economy in a downward spiral. Some of the most common questions these days are: Is recession coming to and end? Is economy showing an improvement? Has the employment rate recovered? Recession is generally described as "a period of economic decline". Lets find out some...

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Dividend Explained...

To carry on what we started with "what is a bonus share?", let's discuss dividends today. Definition of Dividend That part of the earnings of a corporation that is distributed to its shareholders; usually paid quarterly. When a corporation earns a profit or surplus, that money can be put to two uses: it can either be re-invested in the business (called retained earnings), or it can be paid to the shareholders as a dividend. Many corporations...

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5 investing lessons from the T20 loss

There can be quite a few similarities between Cricket and Investments. Let us see what we, as investors, can learn from this: 1. Past perfect, future tense In the T20 format, it is far more difficult to predict than in other longer formats. In the equity markets too, the shorter the time duration, the more difficult it is to predict. Just as how no fund manager knew at 21,000 sensex that the market can come down to 9,000, even those...

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What is a Bonus Share

Reliance Industries has declared a Bonus issue of 1:1. WoW!!! But what does it mean? How does it affect me? Should I purchase RIL shares now? We will try to get answers to these questions today. What is a Bonus? Free shares of stock given to current shareholders, based upon the number of shares that a shareholder owns. While this stock action increases the number of shares owned, it does not increase the total value. This is...

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RIL announces 1:1 bonus issue

Mukesh Ambani group firm Reliance Industries (RIL) today said it will issue one bonus share for every share held in the company.The board of directors of the company at its meeting held today, recommended issuance of bonus shares in the ratio of one equity share of Rs 10 each for each share held, RIL said in a filing to the Bombay Stock Exchange (BSE). The issue of bonus shares is subject to the shareholders' approval, it added. The board has also declared a dividend of Rs 13 per fully paid-up equity share of Rs 10 of the company...

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Taxing Salaried is back

It has been quite a long time since I posted here. I know this was wrong on my part to leave the blog orphaned but I was busy with some of the other issues which are generally not in anyone's control.Now, I'm back and am determined to not let this happen again. I was thinking of where to start again? So guys, please help me. Suggest a few topics that we can take up here and discuss. Please visit the blog, share your comments or vote on so that I can decide on what to take u...

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