Bonus Share
Instead of giving out dividend to its shareholders, some companies opt to issue bonus share as another form of incentives for their loyal shareholders. There are good and bad for shareholder receiving bonus share instead of dividend which could be more practical. Based on my finding, bonus share is issue after the company has gathered enough reserves (dividend which was not paid to shareholders) over the years and transfer them to company's capital. Issuing bonus share will adjust the market price for the share and thus drives volatility, making the share seems to be more affordable and attract more investors.
The following are some articles I have read about bonus share:
why-are-bonus-shares-issued-and-what-are-their-advantages
bonus-issues-stock-markets
Besides bonus share, Solution Engineering issued bonus warrant for its shareholders. Actually, for this part, I have mixed feeling on this because unlike share, warrant has an expiry date. Well, the expiry date is 5 years from now. I will have to monitor closely to decide if I want to sell them when the price is right, or convert them into regular share.
Ex-Date
This is the cut-off date for which shareholders entitle to get the bonus share. Let's take Solution Engineering as example, the Ex-Date for the bonus issue is 24-Jun-2016 (Friday), which means anyone who holds 0093 until the market closed on 24-Jun, 5:00 PM is entitled to receive bonus issue.
Entitlement Date
This is another date that we should know, but not as important as Ex-date. Entitlement date is the date when shareholders are eligible to get the bonus issue. Malaysia exercise T+3 days, meaning any transaction made on T date, will reflect on Central Depository System (CDS) 3 days after. After T+3, Company Registrar will calculate your entitled bonus based on the record in CDS.
The following is a post from a blogger who explains Ex-Date and Entitlement Date in a very detail way.
鸟样股票: EX-date （除权日）和Entitlement date （可获得股息权力之日）
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