What is a Bonus Issue (BZ) in the Share Market | Why Do Companies Give Bonus Issues | Stock Market

What is a Bonus Issue (BZ) in the Share Market?

A Bonus Issue is a special event that happens in a company. It’s like a gift that a company gives to its existing shareholders. Imagine you have some parts of a pizza, and the company decides to give you some extra slices for free. That’s what a Bonus Issue is like in the share market.

How Does a Bonus Issue Work?

  1. Reason for Bonus Issue: Companies usually do this when they’re doing really well and want to share their success with their shareholders. It’s a way to say “thank you” to the people who own a part of the company.

  2. Proportionate Increase: When a company gives out bonus shares, it’s like increasing the number of slices in the pizza without changing the size of the pizza. So, if you had 10 shares before the bonus issue, you might get 1 or 2 extra shares for free.

  3. Impact on Share Price: Since the total number of shares increases, the price of each share might go down a bit. But don’t worry, the total value of your shares remains the same because you have more shares at a slightly lower price.

Example of a Bonus Issue:

Let’s say you own 100 shares of a company, and they decide to issue a bonus of 1:1. This means for every 1 share you own, you get 1 more for free. After the bonus issue, you’ll have 200 shares, but the value of each share might be half of what it was before.

Why Do Companies Give Bonus Issues?

  1. Boost Confidence: It shows that the company is confident about its future and wants to reward its shareholders for their trust.

  2. Liquidity: It increases the number of shares available, which can make the stock more liquid. This means it’s easier to buy or sell the shares.

  3. Attracting Investors: Bonus issues can make a company’s shares more attractive to new investors because they can get more shares for the same amount of money.

Things to Remember:

  1. Tax Implications: In some countries, bonus issues might have tax implications. It’s a good idea to check with a financial advisor.

  2. Long-term Benefits: Bonus issues are usually a good sign that the company is doing well. It’s a positive indicator for long-term investors.

  3. Check Company News: Keep an eye on the news and announcements from the company. They might give you more information about why they’re doing a bonus issue.

Remember, the share market can be a bit like a rollercoaster ride. It’s important to do your research and, if needed, talk to a financial advisor to make the best decisions for your investments.

How to apply for Bharti

To apply for, follow these general steps:

Check Eligibility Criteria :Before applying, make sure you meet the eligibility criteria mentioned in the official notification of the recruitment you are interested in. Criteria usually include educational qualification, age limit and sometimes physical standards.

Registration : Visit the official website and navigate to the "Apply" section. There, you will find the ongoing recruitment links. Click on the appropriate link for the Bharti you wish to apply for.

New Registration : If you are a new user, you need to register first. Provide required details like name, date of birth, email id and mobile number to create your account.

Login : After registration, login using the credentials you provided.

Fill Application : Fill the application form with accurate details of personal information, educational qualification, work experience (if any), etc. Be sure to double-check all information before submission.

Upload Documents : Upload scanned copies of required documents like passport size photograph, signature, educational certificates etc. as per the specifications mentioned in the notification.

Fee Payment : Pay the application fee online through the payment gateway provided. Fee payment details will be available in the notification.

Submit Application : After completing all the steps and verifying the information provided, submit your application to

Print Application Form : After successful submission, download and print a copy of your application form for future reference.

Admit Card : Keep an eye on the website for updates regarding release of admit card in . Download your admit card once it is available.

Prepare for the Exam : Start the recruitment exam preparation as per the syllabus and exam pattern given in the notification.

Appear for the Exam : Appear for the exam on the scheduled date, at the designated exam center.

Check Results : After the exam, check the website regularly for updates on the result declaration.Remember to stay updated with the notifications and announcements issued by regarding the recruitment process.

Selection Process for Bharti

The selection process for recruitment usually consists of several stages:

Notification : Releases notification for various posts throughout the year. These notifications contain details like eligibility criteria, exam dates, syllabus and application process.

Application : Candidates must apply online through the official website within the specified dates mentioned in the notification. They have to fill the application form, upload the required documents and pay the application fee.

Admit Card : After the completion of the application process, it issues the admit card to the eligible candidates. Admit cards contain details like exam date, time and venue. Candidates must download and print their admit card from the official website within the specified time. Admit cards are required to enter the examination hall and candidates must carry a valid photo ID at the examination center on the day of the examination.

Exams: Different types of exams are conducted depending on the posts

Result Declaration : It declares the result of each level of examination on its official website. Candidates who are eligible for one tier are eligible to appear for next tier.

Document Verification : After qualifying all levels of the examination, candidates are called for document verification. They need to provide original documents like educational certificates, identity proof and other necessary documents as specified by .

Final Selection :  Final selection is based on candidate's performance in all levels of examination as well as verification of their documents. Merit lists are prepared based on the total marks obtained by the candidates.

Appointment : Candidates selected as per merit list are appointed to respective posts as per available vacancies.

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