Share Market Explosion: Next week these 2 companies will give 10 shares instead of 1, note the record date immediately.

A big opportunity is coming for investors in the Indian stock market next week to earn and strengthen their portfolio. Two companies of the domestic stock market (BSE and NSE) are preparing to give a big gift to their shareholders. These companies are going to give 10 shares to their investors instead of 1 share. If you also invest regularly in the Indian stock market and want to take advantage of this corporate action, then note down the important dates of these companies now.

Lottery will be held for investors: know what is the whole matter

In the stock market, companies often resort to stock split or bonus shares to attract their investors and increase the trading volume i.e. liquidity in the market. Next week, two companies whose corporate action is being watched by the entire market, are going to give big rewards to their investors. After this big announcement of getting 10 shares for 1 share, the interest of retail investors in the shares of these two companies has suddenly increased a lot. This can prove to be a profitable deal for investors from Delhi, Mumbai to small cities of the country in both short-term and long-term terms.

What is the mathematics of getting 10 shares in exchange for 1?

This question is often asked by new investors on search engines and AI tools that what is the real meaning of getting 10 shares in exchange for 1. When a company announces a stock split or bonus in the ratio of 1:10, it simply means that for every 1 old share you hold, you will get 9 additional shares, increasing your total number of shares to 10. However, this does not have any direct impact on the total market cap of the company, because as the number of shares increases, the share price also decreases on a proportionate basis. This process is a great way for small and common investors to make expensive shares affordable.

Take special care of record date and ex-date

To avail the benefit of this bumper scheme, the most important thing is ‘Record Date’ and ‘Ex-Date’. Companies are deciding their cut-off date for this next week itself. According to the rules of the stock market, only those investors whose shares are present in their demat account on the record date will be considered entitled to this profit. If you also want to be a part of this corporate action, then you will have to buy shares of these companies on the ex-date or at least a day before, so that the shares can be credited to your demat account on time under the T+1 settlement cycle of the Indian market.

Before investing, definitely follow this advice of experts

Market experts and certified financial advisors say that one should not blindly invest money in any company just by seeing bonus shares or stock split. Before creating a position in any stock, one should thoroughly examine the company’s financial fundamentals, quarterly results, promoter holding and debt position. Given the current market fluctuations, it would be wise to take any final decision only after consulting your financial advisor.