Right shares technically means the company wants to raise more funds as they don’t have sufficient balance to increase operations.

More at: r/NepalStock by duck_student

  1. Bull market = positive sentiment = room for growth.

    Rights are tricker than bonus shares. You have to analyze the company’s strategy and decide.

    Bonuses help with compounding. Especially for a long-term investor who has their stakes in a good companies.

    A lot of people accuse *uncles* and *aunties* of getting excited over bonus shares. What they don’t realize, usually, is that these people have huge number of shares in their portfolio.

    If you have 10k kittas of say, NICA, you will be getting a neat 1500 shares as bonus. Even if you sell that on the day of bonus share correction, you have 10 lakhs in your bank account.

    Usually, investors who have huge number of shares invest during the bear market or when the market just starts turning bullish. It’s a win-win for them.

    For most traders, bonus shares are irrelevant unless the company is a diamond in the rough. You could be a trading mogul, who invested 1 crore on HDL when it was at around 1500. After last year’s bonus and the compounding, say, you sold it all when it was at 5000, you’d have quadruped your base money.

    That’s where bonuses become relevant. It won’t work as perfectly as I laid out as I’m using hindsight. But you get the feel.

    More money = more profits if you’re smart and safe. In a bull market, dividends amplify that. But only for good companies. That’s why conservative investors tend to go for commercial banks. The volume of their investment ensures good yearly yields.

    It doesn’t make much difference for folks who have 100-200-500 kittas but it makes a world or difference for those with big investment.

    The stock market has a little bit of everything for everyone. We just need to recognize where we are and it’s imperative that we are smart. Risk management and profit booking. No point being greedy.

  2. Nepse traders obsessed with everything- right share, bonus shares, cash dividend. They collectively have to maintain an air of optimism and confidence (internally they may be up the creek with out a paddle) so that they continue to draw “innocent “ investors into the market and hence make a handsome profit.

  3. Right share naya project banauna issue garxa. Operation ma paisa napugda issue grna mildaina or right share issue garera rin tirna mildaina.

  4. Just talk with anyone who are obsessed about right share … They will say mango share (ltp:600) ko share 100 mah pairaxa.. simple Nepal mah price adjustment lai baal dinan

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