What if the price of a stock goes too high in long term and the company reduces the price of stock, so the existing shareholders will be at loss or they get square of?
If face value of Stock is let’s say 10. And the company decides to split the stock to each of face value 5, then the stock price reduces by half and the the shareholder’s demat will show twice the shares he previously held with half the price of each share. So no loss, no gain. The value of the shares held will remain the same.
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