Stock Bonus & Rights Calculator
Participating in a company stock bonus or rights issue? Our Stock Bonus & Rights Calculator helps you determine the impact on your shareholdings, calculate the ex-rights price, and understand the market value of your portfolio after the distribution. Make informed decisions about your equity investments.
What Is
Stock bonus issues (also called scrip dividends or bonus shares) give existing shareholders additional shares for free, in proportion to their current holdings. While the total value of the company doesn't change, the stock price typically adjusts downward to reflect the new share count, resulting in an equivalent total value for shareholders. Rights issues offer existing shareholders the chance to buy additional shares at a discount to the current market price. Shareholders who exercise their rights maintain their ownership percentage, while those who don't may see their stake diluted. Both bonus and rights issues result in an ex-rights price — the theoretical stock price after the distribution, calculated by dividing the pre-distribution value by the number of shares after the issue. This helps you understand the real value of your investment post-distribution.
How to Use
- Enter the number of shares you currently hold
- Enter the current market price per share
- Enter the bonus share ratio (e.g., 0.3 means 3 bonus shares for every 10 held)
- Enter the transfer ratio (e.g., 0.2 for capital reserve transfers)
- Enter the dividend per share if applicable
- Click Calculate to see bonus shares, transfer shares, cash dividend, ex-rights price, and ex-right market value
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Frequently Asked Questions
What is a stock bonus issue?
A stock bonus issue gives existing shareholders additional shares at no cost, in proportion to their existing holdings. No company value is created, but the share price adjusts to reflect the new share count.
What is a rights issue?
A rights issue gives existing shareholders the right to purchase additional shares at a discount to the current market price. Shareholders can choose to exercise, sell, or let their rights expire.
How is the ex-rights price calculated?
Ex-rights price = (Total value before issue) / (Total shares after issue). For example, if you hold 100 shares at $50 each and get 30 bonus shares, the ex-price is ($5,000) / 130 = $38.46.
Are bonus shares taxable?
In most jurisdictions, receiving bonus shares is not a taxable event. However, your cost basis per share decreases, which may affect capital gains tax when you eventually sell.
Should I buy rights issue shares?
It depends on your view of the company's prospects, the discount offered, and whether you want to maintain your ownership percentage. Rights issues at deep discounts may be attractive, but always evaluate the company's fundamentals.
What happens if I don't exercise my rights?
Your ownership percentage will be diluted as new shares are issued to other shareholders. Your rights may also be worth less or expire worthless.