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No. of Recommendations: 1
Can someone tell me the purpose of bonus issues.
The only benefit I can see it that it probably increases the liquidity of the stock. It reduces the Price Per Share without reducing existing shareholder value. It makes it easier to trade smaller lots, and therefore probably reduces the buy/sell spread.

Apart from that, it makes about as much sense to me as the guy who ordered a large pizza, but only wanted it cut in four slices, because he couldn't finish eight slices.


chrischalkley

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