What is a stock split, and why do companies do it?
Market Basics
A stock split divides each existing share into multiple shares, lowering the price per share while keeping the company’s total value unchanged.
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For example, in a 1:2 split, one ₹100 share becomes two ₹50 shares — total holding value stays the same. Companies split stocks mainly to improve affordability and liquidity, making shares more accessible to smaller retail investors without changing underlying fundamentals.
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