PTC pick your brain please

PEEmery2000PEEmery2000 New MemberPosts: 6Registered
Im in the process of cramming for PTC tomorow, cnt wait for it to be over,

Ive been concentration on section 2 and the share pool

After reviewing the questions ive noticed they like rights issues and bonus issues.

So ive realised that if they had 10000 shares at the end of a pool (apr 98), purchased another 5000 in for example 2004 and a rights issue of 1 to 10 was done after this. I would issue 500 more to my '5000' share and a further 1000 shares to my pool value.

Does it work the same with bonus issue of shares? Are they treated pretty much idential but one has a cost and the other doesnt? I hope i make sense with what im saying.

Thanks

Comments

  • speegsspeegs Experienced Mentor Posts: 854Registered
    Hi PEEmery2000

    You are correct.

    The only difference between the bonus issue shares and the rights issue shares is that you have to pay for a rights issue, but you do not pay for a bonus issue.

    Speegs
  • kyle1kyle1 Feels At Home Posts: 31Registered
    Im in the process of cramming for PTC tomorow, cnt wait for it to be over,

    Ive been concentration on section 2 and the share pool

    After reviewing the questions ive noticed they like rights issues and bonus issues.

    So ive realised that if they had 10000 shares at the end of a pool (apr 98), purchased another 5000 in for example 2004 and a rights issue of 1 to 10 was done after this. I would issue 500 more to my '5000' share and a further 1000 shares to my pool value.

    Does it work the same with bonus issue of shares? Are they treated pretty much idential but one has a cost and the other doesnt? I hope i make sense with what im saying.

    Thanks
    Just read through my notes and as far as i am aware they are treated the same you will proportion the bonus issue to the pool (apr98) and to any other shares owned at that point in time.
  • PEEmery2000PEEmery2000 New Member Posts: 6Registered
    thank you
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