Spilt shares - explain

how to spilt shares
whats date concern abovut spit
what benifit get small buyers ?

When a stock undergoes a split the face value of the stock reduces. One of the main goals of a stock split is to increase the participation in a stock. There are two major dates

  1. Ex-date - the date on which the stock starts trading with the changed face value.
  2. Record date - the date on which the company checks its records to determine the eligibility of shareholders to credit the shares post the split.

Check this explanation on Varsity for more

Hi Nee - Following points needs to be remembered w.r.t stock split

  1. Number of shares increases on Ex date (Actual receipt date in demat varies)
  2. Total cost remains the same
  3. Average cost per share reduces
  4. Market value per share on the ex date falls as the market adjusts to the stock split
  5. There is no outflow of cash

Hope the above is useful :slight_smile: