splitting of shares

361 views 3 replies

whats d reason behind splitting n reverse splitting of shares?

Replies (3)

When Companies share value is very high in market, company splits its share (for eg. 1 share of rs. 100 each in 10sh. of rs.10each) without changing its overall effect in price.

The reason behind this is that an Investor can purchase more share in same value( eg.  100 share of rs1000 each = rs.100000 , But in case above if share are split into 10 for 1 than 1000 share X rs100 each =rs.100000) This mean an investor can purchase more lots of share in same/less value.

This could basically benifit small investors.

 

Reverse split is Vice verse , But reason is to protect companies share to get De-list from Stock exchange as value could be very low.

u hv given same eg. from economics times.......awesome xplanation

reverse split has something more 2 like some investors(co.s) are prohibitted from buying shares denominated below fv rs 10........

ok ,

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 07 July 2026
Articleship

Jawahar and Associates Chartered Accountants

Hyderabad

CA Inter

View Details
Company
24 June 2026
Senior Account (VA Client Operations)

Karbon Business

Bengaluru

CA Inter

View Details
Company
ARTICLESHIP 30 June 2026
Article Assistant or Paid Assistant

VIKAS VERMA & CO

New Delhi

Others

View Details
Company
06 July 2026
Accountant

Agarwal Anoop and Associates

Noida

CA Final

View Details
Company
20 June 2026
Chartered Accountant

ANV & Company

New Delhi

CA

View Details
Company
ARTICLESHIP 24 June 2026
CA Article Trainee

Rahul Dang & Associates

Pune

CA Inter

View Details
Company
06 July 2026
C.A./CA Inter OR pursuing C.A./GST/Accounts/Audit/IT - Head

Arvindkumar Maniar & Co.

Rajkot

CA

View Details
Company
ARTICLESHIP 30 June 2026
Taxation Content Writer Intern

Interactive Media Pvt Ltd.

New Delhi

CA Inter

View Details