• Stock Split
    Stock Split

    Stock Split – Understanding

    What is a Stock Split? A stock split is an action taken or technique used by a firm (company, corporate) to increase the number of shares outstanding by reducing the par value and market price of the stock. Even, the number of outstanding shares increases the cash value of the company does not increase, rather than remains the same as pre-split amounts because it does not affect the balance sheet amount of the company. The purpose of it is to enhance the marketability of shares bringing it within optimal price range. When a company announces stock splits, it results in an increase in the number of outstanding shares with a…