What is a stock split?

What is a stock split?

A stock split is a corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares. Although the number of shares outstanding increases by a specific multiple, the total value of the shares remains the same compared to pre-split amounts, because the split does not add any real value.
    • Related Articles

    • Why does my order get split into multiple trades?

      When you place an order on FYERS, you may notice that it gets executed in parts at different prices and times. This is called order splitting, and it happens because of various factors that affect the order matching process on the exchange. Some of ...
    • What is latency in stock market?

      Latency in stock markets is the delay that occurs between placing an order and executing it on the exchange. It affects the speed and accuracy of trade execution and can impact the profitability of traders. For instance, Mr. A wants to buy 100 shares ...
    • What are stock indices and how are they calculated?

      To gauge the movement of all the stocks at any given time is a cumbersome process for an average investor. Hence, representation has been designed which encompasses a basket of similar stocks, to indicate the trend of the market. This representation ...
    • How to file a complaint against a Stock Broker?

      If you are an investor/client who has a grievance with your Stock Broker, you can follow the procedure given below to file a complaint and seek resolution. Procedure: First, you should lodge a complaint directly with the concerned Stock Broker. In ...
    • What will happen to my Intraday position if the stock hits the circuit limit?

      An Intraday position in Equity allows you to buy or sell stocks with leverage (up to 5 times the money in your account). However, you must close your Intraday trades on the same day. If you don’t, we will try to close them for you around 3.15 PM. But ...