what is share spilitting

Answer Posted / babhu kanchupalli

Share split refers to the increasing number of shares by decreasing their face value and another important thing is....the share capital of the company is remains the same even after splitting their shares.

Example : ITC ltd have 100000 shares of 100 rupees each....after share split, the number of shares increase to 200000 shares of 50 rupees each.....normarlly companies do share split to attract the small investors.....

In the same manner the opposite of share split is called reverse split.....companies can do reverse split to attract the huge investments from the institutional investors.......

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