Corporate Actions
Bonus, mergers, stock splits and more
A stock split is when a company increases the number of its shares by splitting its existing shares into multiple new shares. This does not change the total value of your investment, it only increases the number of shares and reduces the price per share proportionately.
📊 For example:
If you own 1 share worth ₹1,000, and the company announces a 2:1 stock split,
your 1 share becomes 2 shares worth ₹500 each.
🧮 Your total investment is still ₹1,000, just the number of shares will increase,
and by quantities, the average price will be updated to ₹500
(Total investment ₹1,000 ÷ Total quantities 2 = ₹500)
Why Does a Company Split Shares?
💸 To make the share price more affordable for small investors
🔄 Increase liquidity (more shares available to trade)
👥 Attract more retail participation in the stock
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