I bought 100 shares at Rs 100. There was a stock split and 1 share became 2 shares. Instead of 100 shares, I now have 200 shares. What should be the buying average price now on my holdings and P&L?
Since this is a stock split, the cost of purchase of the stock also splits into 2. So the new average buying price is Rs 50 for all the 200 shares.
If it was a bonus, and say the company gave 1 bonus share for 1 stock held. The bonus would be given at a cost price of Rs 0 by the company. So for 100 shares held at Rs 100, you got 100 shares @ Rs 0. The average price of 200 together is still 50, but here the average price of first 100 stock is100 and the second 100 is 0.
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