what is share spilitting
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Answer / h.r. sreepada bhagi
In simple words splitting of shares refers to increase int
eh number of existing shares by reducing the face value.
For example, a company can split its shares of by issuing 10
shares of Rs. 10/- each in place of existing 1 share of
Rs.100/- each.
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Answer / sukanya
A share split is similar to a scrip issue. A scrip issue
(also called a capitalisation issue or a bonus issue) is the
issue of new shares to existing shareholders at no charge,
pro rata to their existing shareholdings. Shareholders are
issued with new shares are no cost, but its effect on the
balance sheet is different from that of a bonus issue.
A split reduces the par value of each share, but increases
the number of shares by the same proportion. For example, if
the par value of shares is reduced from 10p to 5p, then the
number of shares will be doubled, and each shareholder will
receive two shares to replace each one they currently own.
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Answer / 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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