Stock Split

Division of already issued (outstanding ) shares of a firm into a larger number of shares, to make them more affordable and thus  improve their marketability while maintaining the current stockholder’s proportional ownership of the firm. The aggregate value of the shares remain the same as before the split, but the price (and dividend) per share decline with the split ratio.

For Example : If the shares are split in the multiple of 2 (2:1 split ), a share with a par value of $ 10 becomes 2 shares, each with a par value of $ 5.

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