Lets Split the Bonus among us !

The story of King Bruce and the spider is not entirely unknown. Try try try till you succeed. I did not know the same applied to the stock markets as well. Its as if the markets are trying to head to the sky till nothing higher is possible... all in the name of prospects, and future earnings. I know most of the people who happen to read this blog, would criticize my ideas and question my credentials and its veracity, but then I still would maintain my stance kee yah! The recent thing going on in the market was TCS Bonus ... some say thats the reason for it to go high.

I dont quite understand how this market works. I heard my manager say ... TCS is rewarding the stake holders by giving them a Bonus. He also added for my knowledge... Stock Bonuses and Splits are ways to make the share holders happy. Rubbish! I remember this from my childhood days ... the days when a ONE rupee note was big money. Whenever I would pick up a rupee note from my fathers purse and play with it, he would be concerned, I would tear it. To save the pain of sticking it back with cello-tape, he would give me 2 50 paise coins and say ... " See now you have '2' money instead of '1' money". This would make me happy. This is the exact strategy with a stock split. Give the stock holders the same amount of money, decrease the value of the underlying security by factor of 2 and say " See ... more shares :)" and we like kids feel happy and raise the price of the stock to astronomical levels.(Read Cipla prices 2006 pre - split reached 700+ more than 1.5 times its current value even when the market was 8000 odd levels. Dont you readers think, it is just taking advantage of being in reach of the masses while you dilute your offering? Basically, for say X Rs. the total book value you own will be exactly same if it is 1 share (pre split) or 2 shares (post split).
Same is the case with a Bonus... I put in more capital into my company, at the same time increase the number of shares by giving you more shares of the company. Your net value per share has decreased, and the total number of shares have increased by an equal quantity all in all ... no gain. So why the ho-halla about Bonus? beats me!!!