🎓 Share market basics · Lesson 7/10
Dividend, bonus, right share and book close
When you must buy to qualify, what tax is cut, and how to apply for a right. · ⏱ 3 min
Three kinds of benefit
- Cash dividend: part of the profit paid in cash, as a % of the Rs 100 face value. 10% cash = Rs 10 per share, paid to your bank account.
- Bonus share: extra shares instead of cash. 10% bonus = 10 more shares per 100. They arrive in your demat.
- Right share: to raise capital the company lets existing holders buy new shares at Rs 100. A 1:1 right lets you buy as many as you hold.