• Privacy Policy
  • Refund and Returns Policy
  • Term Conditions
  • My Account
Saturday, February 4, 2023
Money Blog
  • Login
  • Register
  • Home
  • Investments
  • Personal Finance
  • Stock Market
Blog
Subscribe
  • Home
  • Investments
  • Personal Finance
  • Stock Market
Money Blog
Home Blog

Stock Split

A Concise Guide to Stock Split and Reverse Stock Split

by Skills.Money
in Blog, Investing
Reading Time: 5 mins read
A A

A stock split involves issuing new shares without receiving additional cash. In a stock split, each share is split into a more significant number – for example, in a 2-for-1 split, each original share results in 2 shares after the split. After a stock split, a company’s value is unchanged. However, it reduces the stock price. Also, the par value of the share is reduced.

A share split is achieved by dividing the existing share capital into a more significant number of shares with a lower nominal value per share. Splitting the nominal value of shares in this way will affect the market price. Psychologically, investors may view the share more favorably if the price has been brought down in this way.

One advantage of a stock split is that it reduces the market price, making it more affordable to potential investors. When the price for a share of stock gets too high, some investors may not want to purchase any shares because they cannot purchase a significant number of shares at one time or view the purchase as a substantial risk to their wealth. Therefore, after a stock split, the shares become more affordable.

This is a Premium Content

Login if you have purchased

Membership

Get Access to all the Premium Content.
More than 100+ Articles, Mini Courses, Quizzes and Contests.
Subscribe Now
Continue Reading
Previous Post

Rights Issue

Next Post

Convertible Securities

Next Post

Convertible Securities

Skills.Money

We Offer Premium Content in Financial Literacy through blogs, interactive micro courses, quizzes. Membership offers access to premium content and chance to win quiz contests.

Site Links

  • Privacy Policy
  • Refund and Returns Policy
  • Term Conditions
  • My Account

Our Social Media

Newsletter

© 2022 Skills.Money A Financial Literacy Initiative.

No Result
View All Result
  • Home
  • Mini Courses
    • Personal Finance
    • Investments
    • Stock Market
  • Blog
    • Economy
    • Insurance
    • Investing
    • Personal Finance
    • Taxation
  • Membership
  • My Account

© 2022 Skills.Money A Financial Literacy Initiative.

Welcome Back!

OR

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?