Bonus Issue Date

[fenglish]

Hi,

Company A announces the following dividend policy for this year: Distribute 10 bonus shares per 50 shares to current shareholders.
It also states that all bonus shares can be traded from a specified date at 10/9/2017.

What is the term for describing the first date that all bonus shares can be traded in the market?

1). Bonus Issue
2). Bonus Issue Date

I think #2 may correct but not 100% sure.

Please help.
Thanks.

 

[GoesStation]

The bonus issue date would be the date they're distributed, not necessarily the first date they can be sold.

 

[fenglish]

The bonus issue date would be the date they're distributed, not necessarily the first date they can be sold.

Thanks.
I need to define the date for project purpose. What is the correct term I should use?

 

[fenglish]

Are the following terms correct?

3). Bonus Shares Listing Date
4). Bonus Listing Date

 

[fenglish]

No. The shares are already listed on the exchange. There is nothing special about 'bonus shares'. The company is just giving a stock dividend instead of a cash dividend. The 'payout date' is the date the share dividend shows up in your account. They can be traded at any time after this. If you want to give it a name, call it the 'trading date'. The company is merely increasing the float of tradable shares.

Hi RobertJ,

Thanks for your detail explanation.

I have just googled and found this link: https://www.mindtree.com/about-us/news/press-releases/mindtree-clarifies-trading-date-bonus-shares

Bangalore (India) and Warren (NJ), June 2, 2014: Mindtree, a global technology services company, earlier announced that the record date to determine the shareholders who are eligible to receive the bonus shares has been fixed as June 4, 2014. The Company clarifies that shareholders who hold their shares in dematerialized form, bonus shares will be credited to their account no later than June 9, 2014. Thereafter, the Company expects to receive the listing approvals no later than June 14, 2014 and reiterates that the bonus shares can be traded at any time after the listing approvals are received. For shareholders holding their shares in physical form, share certificates will be sent to them in due course, within the applicable timelines.

From the above highlighted sentence, it says the bonus shares also needs to get the listing approval.

So, is the "Bonus Listing Date" also correct?

Please help to explain again. Thanks.