Hathway stock is going to split tomorrow.what does it mean,they are saying “stock split from rs. 10 to rs. 2”. so if a stock split will it give profit or loss.
suppose,if a someone is holding 100 shares and this stock will split.the i will get extra more shares or my 100 shares will be reduced?
You will get 500 shares. But the value of shares now and later will be same, no profit or loss.
100 shares x share price today
500 shares x share price after split
Both value will be same.
Market value or share value remains same after the split, whatever ratio it might be 1:5 or anything, You will get additional shares credited in your demat account, but value will remain same.
In addition to above answers, this corporate event takes place to encourage more participation amongst investors, in turn to have a good volumes for this particular stock… At times when stock split happens, understand the company has big plans in coming days according to me.
Yes, like Sunny said.
Stock Split, encourages more retail buyers (since the stock becomes more affordable) and this in turn created new demand in the market for that stock. Eventually price tends to increase after stock split, as evident in most of the stock split cases.
So indirectly, the value of your stock may increase after split.