Key Takeaway
A stock split increases the number of shares while proportionally reducing the price per share. A 1:5 split on a ₹5,000 stock gives you 5 shares at ₹1,000 each , your total investment value stays the same.
Stock Split Calculator
Calculate adjusted shares and price post-split.
New Share Count
500
Adjusted Price per Share
₹500.00
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Frequently Asked Questions
Does a stock split change my portfolio value?
No. A stock split multiplies your number of shares but proportionally reduces the price per share, keeping your total investment value identical.
Why do companies split their stock?
Companies split stock to lower the price per share, making it more affordable and accessible to retail investors, which increases trading liquidity.
Are stock splits taxable events?
No. Stock splits do not create a taxable event. Your total cost basis remains the same, but the cost basis per share is adjusted downwards.
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