1 / 13

stock split

stock split. Stock split is the process of splitting shares with high face value into shares of a lower face value. Face value - The face value is the fixed price of a share which is set by promoters and bankers while forming the company. 

alanna
Télécharger la présentation

stock split

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. stock split • Stock split is the process of splitting shares with high face value into shares of a lower face value. • Face value - The face value is the fixed price of a share which is set by promoters and bankers while forming the company.  • A stock split increases the number of shares in a public company. The price is adjusted such that the market capitalization of the company almost remains same.

  2. Types of Stock splits

  3. FORWARD STOCK SPLITS • A stock market strategy. • Ratio can be 2-for-1, 3-for-1, 3-for-2 or 4-for-1. • Eg. 100 shares x $50 = $5,000 before the split. 200 shares x $25 = $5,000 after the split • The price of the stock however, the number of shares. • A company issues additional shares of stock • shareholders own more shares. • Liquidity of the stock

  4. REVERSE STOCK SPLITS • A negative investment strategy - a stock merge. • A tactic to reduce the number of shareholders. • Indication that a company is in financial trouble. • Eg. 100 shares x $50 = $5,000 before the split. 50 shares x $100 = $5,000 after the split • The price of the stock however, the number of shares • "D" to the end of its name- Name change and consolidation

  5. Companies with low share prices uses for: 1. Gain more respectability in the market. 2. Prevent from being delisted, or even removed from the market indexes.

  6. Stages • PRE-ANNOUNCEMENT • ANNOUNCEMENT • DORMANCY • PRE-SPLIT RUN • THE SPLIT

  7. Bonus issue: • Acompany gives free shares to its existing shareholders on a pro rata basis. • For instance, if a company declares a bonus of 2:1, the investor gets two additional shares for each share he holds. • Does not mean that the company has raised additional capital. • Stock split: • It is the division of a share into multiple shares. • Breaking the face value of share, the company tries to boost the liquidity of its shares. • investors have more shares after a stock split, their wealth remains unaffected.

  8. Britania industry Rs. 2118 424 424 424 424 424

  9. Other companies which had opted for stock splits are…

  10. Conclusion

More Related