27 August 2014
The market value per share will also be split as per the ratio of share split. Explained below: Assume the market value of a company is 1 crore and number of shares (FV Rs. 10) are 100,000. MV per share is Rs. 100. Now the shares are split into 1,000,000 shares of FV Re. 1 each. Since the total value of the company is still 1 crore, MV per share is 1 crore / 10 lac shares i.e. Rs. 10 per share. This is generally done for easy marketability of stocks.
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