Cutting each share into pieces

Watch the face value change.

In a **stock split**, every share you own is cut into smaller shares. Watch the count, the price and the face value.

Same company, same total value, just cut into more pieces.

Face value and the split

• Face value the share's value on paper — Each share has a fixed **face value**, such as ₹10, recorded by the company. It's not the market price.
• The split face value is divided — A split divides the face value: ₹10 split into ₹5 shares means **each share becomes 2**. Your count rises and the price falls in the same proportion.
• Why split? a lower price per share — Like a bonus, a split makes each share cheaper, which can bring in more small investors.

**Remember:** shares × price stays the same after a split.

Slide the split

Slide the split.

You own **100 shares** at **₹900** (face value ₹10): ₹90,000 in all.

Example prices; after the split the market sets the price.

Split or bonus?

Switch between the two sizes.

For your wallet they look identical. The difference is behind the scenes.

**Remember:** a split changes the face value; a bonus creates new shares from reserves and keeps it.

Check — Question 4 of 4

After a stock split…

What you now know

• A stock split divides each share's face value, so each share becomes several.
• Share count rises and price falls in the same proportion.
• Your total value and your slice of the company stay the same.
• A split changes the face value; a bonus issue keeps it.
• Companies split to make each share cheaper to buy.