Blog

Home / Archive by category "Blog"
Deciphering Corporate Actions: Bonus Share Issue

Deciphering Corporate Actions: Bonus Share Issue

What is a Bonus Share Issue?

 

A Bonus Share is also known as Scrip Issue or Capitalisation Issue. Existing shareholders of the company gets free additional shares at no cost in direct proportion to the existing shares that they hold. 

For example, if there is a Bonus Offer of 1 for 10, it means that the existing shareholders will receive 1 new share, for every 10 existing shares that they have.

Bonus Share issue will result in an increase of outstanding shares in the market. However, it does not cause any dilution in the shareholders' ownership in the company.

The bonus shares are accorded from the company's share price premium or retained earnings. Retained earnings are the net profits accumulated over the years and are not paid out in dividends to shareholders.

The conversion of retained earnings to paid-up share capital (Bonus Shares) is known as capitalisation of reserves. During the capitalisation of reserves, there will be corresponding increase in shareholders' equity and decrease in retained earnings.

 

*Important Note* No new funds are raised in this corporate action.
Shareholders are issued bonus shares for FREE.

 

Read More

Deciphering Corporate Actions: Share Consolidations and Share Splits

Deciphering Corporate Actions: Share Consolidations and Share Splits

 

What is Share Consolidation?

 

Share Consolidation is also known as "Reverse Stock Split". It is a corporate action to decrease the total number of outstanding shares and increase the nominal or par value of each share.

After the corporate action, the shareholder will own fewer but theoretically higher priced shares due to the decrease in the total outstanding shares in the market.

There will be no impact on the value of the shareholder's holdings relative to the total market valuation of the company.

Read More

Deciphering Corporate Actions: Right Issues

Deciphering Corporate Actions: Right Issues

 

What is a Right Issue?

 

Right issue is a mean for companies to raise funds by issuing new ordinary shares. Companies can issue other securities such as preferential shares, bonds and warrants instead of new ordinary shares. The company can ask the existing shareholders for capital for the following reasons:

  • To fund acquisition or expansion plans.
  • To repay maturing debts as an alternative. The company may be unable to secure more borrowings.

 

Existing shareholders are given the opportunity to maintain their stake in the company to prevent dilution. When there is a right issue and the existing shareholder chooses not to subscribe for the new shares, the shareholder's stake in the company is diluted, as the new shares are added to the total shares outstanding in the market.

 

Read More

Deciphering Corporate Actions: What are Corporate Actions, The Types of Corporate Actions and Dividends?

Deciphering Corporate Actions: What are Corporate Actions, The Types of Corporate Actions and Dividends?

What are Corporate Actions?

 

Corporate Actions are events implemented by a company. These actions have to be approved by the company's board of directors, and shareholders are empowered to vote on specified proposed corporate actions.

Corporate actions affect preferred shareholders, common shareholders and bondholders.

Shareholders are required to respond to certain corporate actions such as dividends, right issues and merger and acquisitions cash offers.  

Read More

Deciphering Corporate Actions: What is Ex-Date, Record Date & Date Payable?

Deciphering Corporate Actions: What is Ex-Date, Record Date & Date Payable?

 

As a remisier for many years, I realised that investors and traders who are starting out tend to ask a similar set of questions. The topic on deciphering corporate actions has popped up multiple times, and I have decided to compile the information to educate the folks out there. You're welcome.

 

Read More

Market Update (SG & US) with Live Trades shown

Market Update (SG & US) with Live Trades shown

Hi Community,

I have decided to value-add by posting whenever I feel there is an upcoming trend change in the major markets.

This is in comparison to doing up a "monthly" update, where there can be no significant movement in a month, or having a highly volatile environment where I will be doing up more posts to keep you guys updated.

Please note that I will be showing some of my live trades that I have done with the community, using the $10k challenge I have setup 2nd quarter of 2016.

This is to show that you can be consistent and be rewarded even with a small capital, as long as you take action with a systematic trading strategy.

Read More

POEMS Mobile 2.0 is NOW AVAILABLE!

POEMS Mobile 2.0 is NOW AVAILABLE!

 

POEMS Mobile 2.0 IS NOW AVAILABLE

The best in class – POEMS Mobile just got better with the multi-asset, multi-market mobile trading platform.

Built from ground up and informed by UX (user experience) best practices, POEMS Mobile 2.0’s intuitive features simplify trading like never before. With POEMS Mobile 2.0, you can look forward to a better and more personalized mobile trading experience through the intuitive navigation and power of customization.

From now till 11 December 2017, the first 200 clients to download POEMS Mobile 2.0 and execute 1 Equity Done Trade will receive a pair of S$10 Grab Vouchers*. It’s that simple. This  promotion will be a great opportunity for you to engage your clients to start trading on POEMS Mobile 2.0 today!

Read More

Phillip Unit Trust Year-End Promotion

Phillip Unit Trust Year-End Promotion

 

Hi Community,

Please be informed that there will be a year-end Unit Trust promotion for selected funds from Our Phillip Suite of Funds. The promotion includes Lump Sum investments, refer-a-friend bonus, and Regular Savings Plan (RSP). Promotion starts on 6th Nov and ends on 31st Dec.

Read More

938FM Radio Interview on 6th September 2017 & Market Update

938FM Radio Interview on 6th September 2017 & Market Update

Hi Community,

In my recent 938FM Live Interview, I talked about the following topics:

  • How do you feel about the current market conditions?
  • How do you think investors and traders should take their approach towards the stock market?
  • In this market uncertainty, what are the stocks or sectors to look out for?

I have uploaded the audio for you and have included notes for this interview.

My upcoming 938FM Live Interviews

20th September

I will be on air around 6.15pm.
 

Read More