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I would appreciate if you could let me know how to calculate stock return for a given company when the company issued bonus shares and rights.

If company just paid dividends, stock return would be:

(price at time t+1 - price at time t + dividends)/price at time t.

Thanks in advance.

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Here are some possible approaches:

https://www.theice.com/publicdocs/futures/Ratio_Method.pdf

https://financial.thomsonreuters.com/content/dam/openweb/documents/pdf/financial/corporate-actions-methodology.pdf

Sorry for providing link only! Hope this helps!

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  • $\begingroup$ Bonus Shares and Rights Issues cause the number of outstanding shares to change, and therefore an Adjustment Ratio (based on the before and after number of shares) has to be applied. It is quite similar to the way a Stock Split is handled. These two links explain it well. $\endgroup$ – Alex C Aug 28 '18 at 15:33

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