What is stock split in share market

What is stock split in share market

By: Vlada777 On: 30.06.2017

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A stock split or stock divide increases the number of shares in a public company. Stock split refers to split the face value of the shares of companies. In such case, you will have 10 times the initial number of share held.

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However, the price of shares would also fall proportionately split but the total value of your holding remains the same. This mean more number of shares are available for investors.

This is illustrated in table below. Face value of share Rs. Total value of shares held Rs.

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Change in face value of shares only changes its denomination, without any change in its total value. Illustratively, the value of your money held remains the same whether you hold Rs. Accordingly, the capital of the company also remains unchanged after the stock split as illustrated in table below: Number of shares issued.

Face value of shares issued. As a shareholder you are entitled to receive additional shares on account of the split, as and when it is proposed by the board of directors and approved by shareholders in general meeting of the company.

These are credited to your demat account. In case of physical certificates, depending on the board resolution, you may have to surrender your existing certificates and the new certificates with the changed face value will be issued to you. Get the most detailed result analysis on the web - Real Fast! Reliance Industries Ltd 24 Apr HDFC Bank Ltd 21 Apr Ujjivan Financial Services Ujjivan is the third largest NBFC-MFI focused on serving the underpenetrated economically active ABB India is a leading power and automation technology player.

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what is stock split in share market

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