Realtreaty wrote:murchr wrote:Boris Boyka wrote:guru267 wrote:Realtreaty wrote:Bonus, share split, Rights issue are ways to borrow money from investors and public. Not all those who get Bonuses rush to sell but intend to retain for a good dividend following year.
That is one reason some firms are low in Dividend but high in Bunuses. Example was Panafric which returned a loss but went ahead to give a bonus of 1 for every two. This is like a split or rights issue as immediately the price will fold into two ex-bonus and not many will sell but hold for another year or keep buying.
These are the monies firms want. Slaughtering cat with many tricks
Now which loss did PanAfrica make?
Reminds me of a discussion we had with some people back last year. They equated a "drop in profit" to a "loss" haya mambo mawili ni kizungu mkuti. It took a while to convince them
Basic financial education should be mandatory in our schools.
On a number line a loss would not necessarily mean a negative sum, but a figure lower than projected outcome.
Make a numberline like you are in Primary 2(Two) and see for yourselves what a loss mean. A projection is a value expected and if not met after various expenses its called a loss. A profit is when you attain the projection or you go ahead of it.
@Realtreaty, why are you complicating things. You have a number line alright. Now point to the revenue, then to total expenses. If total expenses are not more than the revenue then it's not a loss.
Good judgement is often the result of experience. Experience is often the result of bad judgement - Mark Twain.