Does a stock split affect the market value of shares?
No, the market value of the shares adjusts proportionately after the split. For example, if the pre-split price of a share was ₹500 and the split ratio is 1:5, the post-split price of each share would be ₹100.
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What is a stock split?
A stock split is a corporate action in which a company divides its existing shares into multiple shares, increasing the number of shares outstanding while reducing the face value proportionately.
Is there a tax implication of a stock split?
No, a stock split does not create a taxable event, as the value of your investment remains the same. Taxes may apply only when you sell the shares.
What happens to my shareholding after a stock split?
Your shareholding increases in proportion to the split ratio. For instance, in a 1:5 stock split, every 1 share you own becomes 5 shares. However, the total value of your investment remains unchanged.
How does a stock split differ from a bonus issue?
Stock Split: Involves splitting the existing shares into smaller units, reducing the face value. Bonus Issue: Free additional shares are issued to existing shareholders from the company’s reserves, without affecting the face value.
What are the pre-market and post-market sessions?
The pre-market and post-market sessions refer to the trading hours that occur outside of the regular trading hours of the stock market. A) Pre-open session Order entry & modification Open: 09:00 hrs Order entry & modification Close: 09:08 hrs* *with ...