What is a Stock Split?
By: Akriti Tomar | Date : Mar 3, 25
What is a Stock Split?
A stock split is a corporate action where a company increases the number of outstanding shares by reducing the face value of each share. Companies generally implement stock splits to improve liquidity and make shares more affordable for investors.
Although the share price decreases after a split, the total investment value remains the same. The newly split shares are usually credited to the investor’s Demat Account within 2 days.
Example Scenario
If a stock with a face value of ₹10 undergoes a 2:1 stock split, its face value reduces from ₹10 to ₹5. This doubles the number of shares an investor owns, but the total investment value remains unchanged.
Stock Split Impact Table
|
In all cases, while the number of shares increases, the price per share decreases proportionally, ensuring that the total investment value remains unchanged.
Need Help?
Contact RMoney: 0562-4266600 / 0562-7188900
Email: askus@rmoneyindia.com
Table of content
Categories
Open Demat Account 
Related Posts
-
Can I update my plan in the middle of the subscription period? Can it be adjusted with my previous plan?
Users can upgrade from a lower to a higher plan. For example, a user with...
-
Follow-On Public Offers (FPO): Everything You Need to Know for Smart Investing
Introduction A Follow-On Public Offer (FPO) is a process through which an already listed...
-
What is Fox Trader?
What is Fox Trader? Fox Trader is an exceptional Algo Trading Platform meticulously crafted to...
-
How to Generate a TPIN
Introduction A TPIN (Transaction Personal Identification Number) is a six-digit code that strengthens the security...
Filing Complaints on SCORES (SEBI) – Easy & Quick
- Register on SCORES Portal (SEBI)
- Mandatory details for filing complaints on SCORES:
- Name, PAN, Address, Mobile Number, E-mail ID
- Benefits:
- Effective Communication
- Speedy redressal of the grieva`nces

IT'S TIME TO HAVE SOME FUN!
Your family deserves this time more than we do.
Share happiness with your family today & come back soon. We will be right here.
Investment to ek bahana hai,
humein to khushiyon ko badhana hai.
E-mail
askus@rmoneyindia.com
Customer Care
+91-9568654321




