What is a stock split?

What is a stock split?

A stock split is a corporate action where a company divides its existing shares into multiple new shares. The total market value of the shares remains unchanged, but the number of shares increases in a specific ratio (like 1:2, 1:5, or 1:10). This makes individual shares more affordable and improves market liquidity.

For example, in a 1:5 stock split, 1 share becomes 5 shares, and each new share is priced at one-fifth of the original share price.

How does it affect FYERS users?

  • Your holdings will automatically reflect the adjusted quantity and price after the corporate action.
  • The value of your total holdings remains unchanged immediately post-split.
  • Any adjustments are typically visible in your FYERS portfolio within 1–2 business days.

What If...

ScenarioExplanation
I don't see the updated share quantityWait for 1–2 business days. FYERS processes stock splits after receiving confirmation from exchanges.
The stock price looks unusually lowThat’s expected. The price adjusts in proportion to the split ratio. No value is lost.
My average buy price or P&L looks incorrectThese values update automatically based on the new quantity. Temporary discrepancies will self-correct shortly.
I’m unsure whether a stock split occurredYou can verify corporate actions on NSE/BSE websites or check FYERS notifications.
If you're unsure about the stock split details, you can check corporate actions in the company's filings or on NSE/BSE announcements.

Last updated: 28 Jun 2025

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