Stock Splits

what is a stock split?

Stock SplitsA stock split is really a procedure helpful to enhance the number of stocks in order to issue more stocks to present shareholders. Simply, when a firm wants to raise the amount of shares in the stock market, a stock split is utilized.

E . g ., if an trader keeps 1000 shares of ACC at Rs.100 per share, after that it utilizes 2-1 stock split can lead to owning 2000 stocks valued at Rs.50 each share. The results of stock splits procedure result in firm’s raise of number of shares as well as decrease in prices however market capital continue same.

The most popular systems of  “stock splits” are 3-1, 2-1 and 3-2. Based on the realtime needs, the various strategies are utilized accordingly. One of the better methods to compute the new share price is to divide the prior stock price through the stock split ratio.

E . g ., if a firm choose 3-1 stock split choice, and then divide Rs.100 by 3 which will result in Rs.33.33 for each share.

Stock split information tags;

stock split definition, meaning details , indian stock splits detail
Why do companies split their stock?, financial dictionary, terms , explanation for stock splits and information

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