A Stock Split is a corporate action where a company divides its existing shares into multiple shares, reducing the price per share but keeping the total investment value unchanged.
In a stock split, the number of shares increases while the price per share decreases proportionally. The company’s total market capitalization remains the same.
Companies usually announce stock splits to make shares more affordable and increase liquidity.
Such corporate actions are regulated by the Securities and Exchange Board of India and executed on exchanges like the National Stock Exchange and Bombay Stock Exchange.
👉 Example: 2-for-1 Split
👉 Total value remains ₹1,000
"If you own 10 shares priced at ₹1,000 each and a 2-for-1 split occurs: 👉 You will have 20 shares priced at ₹500 each"