Stock split is merely splitting the par value of the share and raising the number of shares. For example, say a company had issued 100,000 shares at Rs.10, 3 years ago. It now splits the share to a par value of Rs.5 and increases quantity of shares to 200,000. Therefore, the company’s capital i will.e. Rs.1,000,000 does not change whatsoever by the stock divide up.
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