Stock Split?

A stock split is when a company increases the number of outstanding shares to make the stock more affordable and liquid. This doesn't change the company's market capitalization, but it does decrease the price per share ¹. Here's how it works: let's say a company announces a 2-for-1 stock split. If you own one share with a face value of ₹10, you'll now own two shares with a face value of ₹5 each. The total value of your investment remains the same, but you now hold more shares at a lower price ². When analyzing stock splits, consider the following factors: - Split Ratio: Understand how many new shares you'll receive for each share you already own. - Record Date: This is the date when the company determines which shareholders are eligible for the split. - Motivation: Why is the company splitting its shares? Is it to make the stock more affordable or to increase liquidity?