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How to handle Bonus Shares

When a bonus shares is issued, there are two ways to handle it in StocksCafe.

  1. [Easy] Assume the bonus shares issued are free

    If you believe bonus shares are free, then all you need to do is simply create a BUY transaction with “Price Per Share” = 0 and “Number of Shares” = [number of shares received] with “Date” = [date where you received those shares].
  2. Assume the bonus shares issued are not free

    If you belong to the nothing is free in this world, then you can

    a) create a BUY transaction with “Price Per Share” = [close price just before ExDate] and “Number of Shares” = [number of shares received] with “Date” = [date where you received those shares].

    b) then to “balance” the BUY transaction (since you did not actually paid any money) we will create a scrip dividend of equal value of the total cost of part a
    (e.g. if bonus shares issued is 1 shares for every 10 shares and close before exDate is $10. Then the scrip dividend value should be $1)

Updated on 2 March 2025

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