splitting of shares

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
23 October 2026
Sr. Accountant

SANKARAN & KRISHNAN

New Delhi

B.Com

View Details
Company
ARTICLESHIP 25 October 2026
Article Intern (CA Articleship)

Arpan Bohra & Co

Hyderabad

CA Inter

View Details
Company
14 October 2026
Asst. Manager/Dy Manager (Costing)

manufacturing

Pune

CMA

View Details
Company
21 October 2026
CA INTER/ BCOM WITH EXPERIENCE

CA S KUMAR GUPTA & CO

Amritsar

CA Inter

View Details
Company
13 October 2026
Accountant

Zerdi & Co. Chartered Accountants

Pune

B.Com

View Details
Company
ARTICLESHIP 28 October 2026
Article assistants

Shyam S Gupta and Company

New Delhi

CA Inter

View Details
Company
16 October 2026
CA article trainee

Zerdi & Co. Chartered Accountants

Pune

CA Inter

View Details
Company
14 October 2026
GST & TDS ASSISTANT

AGGARWAL SANJAY & ASSOCIATES

New Delhi

B.Com

View Details