What is Stock split? Stock Split means breaking the stock unit value in small value. But it doesn't affect the stock market value. Breaking the stock unit value in small number increases the quantity of stock held in one shareholder's hand. If he/she already has the stock in higher unit value then after stock split shareholder has more than one share of that company according to their previous stock value. Stock split only increases the number of shares with no effect in stock market value. Stock Split helps: · It helps to increase the stock quantity in market without affecting the market price of stock. · With the help of it company need not to invest more fund to increase the quantity of shares in market. For example: Company XYZ issue 6000 shares of Rs. 100 each. One share price of a company is Rs. 100. Company decides to split the stock. So, now the company issues shares of Rs.50 each. It means the value of one share is Rs. 50. Now any ind
This blog is totally for education purpose which helps to solve finance related numerical like time value of money, annuity ,perpetuity, technique of capital budgeting, cost of capital, working capital management and hire purchase etc.