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corporate actions · beginner

Stock split

A stock split reduces face value and increases the number of shares so that overall capital remains proportionate.

A ten-for-one split on a ten-rupee face value stock results in a one-rupee face value and ten times as many shares.

Splits are often used to make the share price appear more affordable in rupee terms.

Proportionate ownership and company value do not change solely because of a split.

F&O lot sizes may be adjusted around split corporate actions.

Part of the Market Pulse Term of the Day series — factual market vocabulary, not investment advice.