Answer Posted / abhi3774

increasing the number of shares is called as stock split.

Example:

if you have 100 shares, per share is 100Rs. then your portfolio is 100*100=10000.
Stock split means decreasing the share value but increase the number of shares. If share value decreased to 25Rs from 100RS. You can get 4 shares for 100Rs. so your no. of shares will increase and it is same to the existing portfolio. there is no change in the portfolio value.only the no.of shares will increase. then 400 shares * 25Rs = 10000.

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