Profit distribution or transfer of capital reserve to share capital
| short name | full name | tax | Ex-rights price formula | Predictive indicators | |
| 10 get 10 shares | Bonus shares for profit | 10% tax on new shares | Closing price on the record day/(1 + number of free shares per share) | Undistributed earnings per share | |
| 10 to 10 shares | Converting provident fund to share capital | Provident funds are not corporate profits and are not taxed |
Closing price on the record day/(1 + number of free shares per share) | capital reserve per share | |
| 10 pie for 5 yuan | Profit distribution cash dividends | 10% tax on dividends | Closing price on the record date - the cash amount to be distributed per 1 share | Undistributed earnings per share | |
Investment Opportunities:
1. Preemption of rights: The transfer and distribution plan is generally announced in the annual report, and there will be a time interval between the actual announcement of the equity registration date. Most of the transfer plans will be reviewed and approved. Therefore, the stock price will rise significantly after the announcement of the transfer plan and the date of equity registration.
2. Filling the right: the stock price will be greatly reduced after the transfer, and investors who are still optimistic about the company's future will have the opportunity to buy more shares.
3. Pre-judgment the company's dividend distribution plan through the undistributed profit per share and capital reserve fund, and make arrangements in advance.
4. After the cash is distributed, the shareholders' income is safe and the shareholders are more responsible. Therefore, investors are more optimistic about companies that like to pay dividends in the long run.