banner_ad

Split

This query is : Resolved 
Profile Image

Profile Image

(Querist)
19 August 2010 A compnay has declared 16:1 split..Is it a reverse or forward split...Whts the net effect of shares and Earnings Per share.

Thanks
Profile Image

ALLU

Profile Image

ALLU (Expert)
20 August 2010 hi

Normlly company goes for split , whenever the STOCK PRICES are very high and not available for nomal investors
FORWARD SPLIT

Giving extra shares to holding one

eg:

if you hold 100 shares of company and each worth Rs 200

then total worht is 100*200=RS20000

(compay wants to split the shares due to high value and voltality)

spilt (forward)16:1

then total worth is 1600*12.5=RS20000

That means your Worth will not change

2)EPS=INCOME AVAILABLE FOR INVESTORS/OUSTANDING SHRARES

since denominator increased in FORWARD split the EPS will decrease
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
01 June 2026
Audit, Taxation & Compliance Executive

R P S K & Associates

Nashik

CA Inter

View Details
Company
22 May 2026
Audit assistant

Displayandbeyond

Mumbai

CA

View Details
Company
ARTICLESHIP 17 May 2026
CA Article /Trainee

Malik Sunil & co

New Delhi

CA Foundation

View Details
Company
29 May 2026
Finance Head

Bhawar Sales Corporation

Chennai

Graduate (Any)

View Details
Company
19 May 2026
Fundraising Expert

MentorsWorld Ventures Private Limited

Ahmedabad

Others

View Details
Company
14 May 2026
Senior Associate

ABHISHEK SHANKAR AGARWAL & ASSOCIATES

Kolkata

CA

View Details
Company
27 May 2026
Audit Assitant

Virender K Gupta and Co

New Delhi

B.Com

View Details
Company
23 May 2026
Article Assistant

Geeta Manchanda & CO.

New Delhi

CA Inter

View Details