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Corporate Actions

Bonus, mergers, stock splits and more

What is a stock split? Why does a company split the shares ?

A stock split generally takes place to increase liquidity. In the stock split company increases the number of shares by reducing the face value of the stock. It increases the quantity of the shares you're holding by reducing the face value of the stock, but your investment value remains the same. The split shares will be credited within a week.A stock split occurs when a company divides each existing share into multiple shares, increasing the total number of shares. While the number of shares outstanding increases, the total value of shares remains the same. Stock splits lower the price of each share, making them more affordable for smaller investors, which can potentially boost demand and improve liquidity.

Updated on : 22 Nov 2024



Related FAQs

When will I receive dividend?
What are the Corporate Actions, and the impact of the same on stocks/contracts ?
What happens if I do not sell or apply for the rights shares available in my portfolio?
What is merger and demerger ?
What types of corporate actions exist in the Indian stock market ?
What does record date and ex-date mean?
What is the impact of a dividend on a stock or F&O contracts?
What is bonus?
How do I know if I am eligible for bonus shares?
What is the process for participating in a rights issue?
What is dividend?
Why has my average price decreased due to stock split?
How much time does it take to credit the new shares after merger/demerger ?
Will I be eligible to get additional shares of a company if I buy its shares on the ex-date?
Are shareholders eligible for corporate action benefits if the shares are sold on the ex-date/record date?
Why is the dividend amount received lesser than what it should be?
How does the split ratio work
When will I receive the additional shares as per the new face value?
Can I apply for additional shares in the rights issue apart from my entitlement?
Where can I check the dividends which I have received?
Why are there extra RE shares in my portfolio even though I did not buy them ?
When will I receive bonus shares?
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Where can I check all upcoming dividends?
Why has the average price reduced after receiving bonus?
CDSL has credited bonus shares. Why are they not reflecting on my dashboard?
Am I eligible for dividend?
How to pay the remaining amount for the partly paid shares ?
How do partly paid shares work?
What is a Buyback ?
Why does a company choose to initiate a share buyback ?
What happens after the final payment has been made for partly paid shares ?
What is a partly paid share?
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Can I sell partly paid shares before the next call ?





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