Adjustment for Stock Dividend: This adjustement occurs in case of stock dividend. Processes are as below: 1)Find the closing price: We know that no transiction occures on the record date. So, first of all, identify the closing price on day before rec...ord date. As for example, record date of Xcompany was 10th April and the last price on 9th April was 1200tk. So, you have consider the 1200tk in this case. 2)Calculate price of 100 shares: As stock dividend/right share is declared as percentage(%), it will be easier if you consider the adjustement for each 100 shares. To calculate the price of 100 shares, multiply the closing price with 100(number of shares). So, from previous example, price of 100 shares is 1200(tk)X 100(shares)= 1,20,000 tk on day-before-record date. 3)Total shares with bonus: Find out total number of shares (Main+Bonus) you will get after record date for each 100 shares. Suppose, The company declared 20% stock dividend. So your number of shares will be 100+20=120 nos if you have 100 shares on record date. 4)Calculate adjustment: Now the adjustment can be done by following formula: Adjusted Price = Calculated Price of 100 Shares / Total Shares with Bonus Here, (/)sign means, divided by. From the example, we have calculated price of 100 shares is 1,20,000tk and number of shares after record date 120nos. So, adjusted price after record date is, 1,20,000/120 = 1000tk. Courtesy: Habibur Rahman
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