Q.You have advised that GAIL INDIA will issue bonus share of 1:2 , At present share price is around 400/- , I want to know weather i buy at this rate or wait till 5/10/2008 to see any down fall . Kindly advise for the above .
A:At the present rate of 408.6, the Ex-bonus rate works out to around 272.After the stock goes ex-bonus, you can see the price around this level with the bonus shares in your kitty. So the value of your investment will work out to around the same.If you're a long term investor, if does not make much of a difference, as to whether you're buying cum-bonus or ex-bonus.
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Yours truly,
Raghav @ Raghav's Picks
