A share buyback, also known as a stock repurchase, is when a company decides to buy its own shares back from the market. The company then cancels the shares, which reduces the total number of shares outstanding. This gives each remaining shareholder a larger stake in the company and a higher return on future dividends.
A split share is basically when a company divides its existing shares into multiple shares. The total value of the shares, or the company's market capitalization, remains the same, but the price per share decreases. Imagine you have one big pizza, and you cut it into smaller slices. The pizza itself hasn't changed, but now there are more pieces to go around.
Bonus shares are additional shares that a company gives to its existing shareholders for free. Companies issue bonus shares for several reasons, including Rewarding shareholders, Attracting new investors to invest in particular companies, Increasing liquidity, Demonstrating financial health, and Capitalizing on reserves.
A dividend is like a small profit sharing note from a company to its shareholders. It's a portion of the company's profits that they decide to share with the people who own their stock or company share ownership.
Share face value, also known as par value or nominal value of the share, is the original cost of a share as stated on the share certificate. It's like the "sticker price" of a share when a company first issues it. But here's the thing - this value often doesn't reflect the actual market price of the share.
