PSX Bonus Share Adjustment Calculator

Keep your portfolio tracking accurate. Calculate your new **Adjusted Cost Price** and total share count after a bonus issue to ensure your profit and tax calculations are correct.

The Dilution Effect

When a company issues a 20% bonus, it's like cutting a pizza into 12 slices instead of 10. You have more slices, but the total amount of pizza remains the same.

In the PSX, on the "Ex-Date", the market price is automatically adjusted downwards by the exchange to reflect the increase in the number of shares.

Compounding Power

The real magic of bonus shares happens over decades. If a company regularly issues 10% bonuses and maintains its dividend per share, your yield on cost becomes massive as your share count grows exponentially.

Adjusted Cost Basis

Tax Optimization

Frequently Asked Questions

Get answers to common questions about using our professional trading tools.

A bonus issue (or stock dividend) is when a company gives additional shares to its existing shareholders for free, usually in proportion to the shares they already hold (e.g., 10 bonus shares for every 100 held).

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Not immediately. Since the number of shares increases, the price per share usually drops proportionally (dilution). However, if the company continues to perform well, the total value can grow significantly in the long run.

As of 2024-25, there is a tax on the 'value' of bonus shares at the time of issuance for some categories. However, for most individual investors, the main tax concern is the Capital Gains Tax (CGT) when you sell the shares later.

Companies often issue bonus shares to capitalize their reserves or when they want to reward shareholders but prefer to keep the cash within the company for expansion and growth.

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