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HomeIndiaBajaj Finserv Share Price Before the record date of the bonus, there...

Bajaj Finserv Share Price Before the record date of the bonus, there was a lot of buying in the shares, the price jumped by more than 5%

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New Delhi. Many of the investors who have bought the shares of Bajaj Finserv are upset today. The reason for the trouble is that this stock is showing a decline of up to 90 percent. But, you do not need to worry, because this is not a fall, but a stock split. Some people call it a bonus share and some call it a split of the stock. But both are same.

Solving the dilemma of people regarding this, Zerodha co-founder Nitin Kamat has given a very good example. He tweeted that the bonus or split is exactly the same as having 2 chocolates of 50-50 grams instead of one chocolate of 100 grams. Overall there is no difference.

Don’t be afraid and don’t get greedy

The record date for split and bonus of shares of non-banking finance company (NBFC) Bajaj Finserv is September 14. Today its shares are trading at split price. For one share, investors will get 10 shares, but the rate of those shares will also be 10 times less. Nitin Kamat tweeted that whenever there is a stock split, panic (fear) or greed (greed) spread among investors. Those who have it, they start worrying about getting the rate down, those who don’t have it, they think about picking it up at a lower rate.

Today, at 12:51 pm on Tuesday, the share of Bajaj Finserv was trading at Rs 1,786 on NSE, while yesterday the same share closed at Rs 17,138.05. However, after the announcement of the bonus share or split, the share of Bajaj Finserv had seen a significant rise. Even after the split today, this stock is trading above its opening price.

So what should Bajaj Finserv investors do?

Investors should understand that a bonus issue and stock split only increase the number of shares and it does not mean that the stock has become cheaper. It has no bearing on the value of your investment or the principles of the company. Earlier if there were 100 shares of that company in the market, then now the shares will be more and the price will decrease. The value of the company will remain the same.

For example, suppose you own a stock whose face value is Rs 10 and the share price is Rs 500. If it splits in 2:1, the face value will be Rs 5 and the share price will come down to Rs 250. If you had bought 10 shares for Rs 500, you would now have 20 shares worth Rs 250. Meaning your investment was Rs 5000 earlier and it is still there.

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