As mine endevour is always to write the blog is that, in a very easy language, one could understand the topic. Today i am discussing that How to calculate the Share price?, everybody heard that HDFC bank is @ 2000, TCS @ 1800 RELIANCE @ 1000. But we do not calculate their actual price , we just see the Share price.
Let us see with two prominent aspects:
:
To calculate with SPLIT SHARES
Suppose X company has issued fresh equity shares of 1 lakh @ 100 for 10 rupees face value on 01 July 2004
On July 2008 Company decided to split the face value from 10 to 5 rupees, and that time Share price is @ 150
Now what will be happened?
A Quantity of Shares would be from 1 lakh to 2 lakh and share price would be 75 from 150.
Now as a Layman enters in a Market, He only sees the Price @ 75 but do not see the Face value.
Actual price of Share is 150 not 75, So while accessing the Price of Equity shares, You should have consider the face value utmost.
To calculate with BONUS SHARES
Suppose X company paid up equity shares of 1 lakh and Share Price is @ 100 on 1 JULY 2004
On July 2008 Company decided to issue bonus shares of 1:1 and that time Share price is @ 150
Now what will be happened?
A Quantity of Shares would be from 1 lakh to 2 lakh and share price would be 75 from 150.
It is same process as we have been discussed in split shares, just you have to see that how many times company has issued bonus shares, split shares to calculate the actual share price.
If you have liked my blog so do share with others also.
Let us see with two prominent aspects:
:
To calculate with SPLIT SHARES
Suppose X company has issued fresh equity shares of 1 lakh @ 100 for 10 rupees face value on 01 July 2004
On July 2008 Company decided to split the face value from 10 to 5 rupees, and that time Share price is @ 150
Now what will be happened?
A Quantity of Shares would be from 1 lakh to 2 lakh and share price would be 75 from 150.
Now as a Layman enters in a Market, He only sees the Price @ 75 but do not see the Face value.
Actual price of Share is 150 not 75, So while accessing the Price of Equity shares, You should have consider the face value utmost.
To calculate with BONUS SHARES
Suppose X company paid up equity shares of 1 lakh and Share Price is @ 100 on 1 JULY 2004
On July 2008 Company decided to issue bonus shares of 1:1 and that time Share price is @ 150
Now what will be happened?
A Quantity of Shares would be from 1 lakh to 2 lakh and share price would be 75 from 150.
It is same process as we have been discussed in split shares, just you have to see that how many times company has issued bonus shares, split shares to calculate the actual share price.
If you have liked my blog so do share with others also.
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