Calculate your new shareholding after a stock split or reverse split
Split Ratio: 1:2 - Each share will become 2.0 shares (Forward Split)
Your holding will change from 100 shares @ ₹2000 to 200 shares @ ₹1000.00 after the 1:2 stock split. Your total investment value remains ₹2,00,000.
🎯 Forward Split: Your shares will increase by 100% while price decreases proportionally.
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A Stock Split Calculator helps investors understand the impact of a stock split on their holdings. When a company announces a stock split, the number of shares increases while the price per share decreases proportionally, keeping the total investment value unchanged. Stock splits make shares more affordable and improve liquidity. This calculator shows your new share quantity and adjusted price after the split.
No! Stock splits don't change your investment's total value. If you owned ₹2 lakh worth of shares before split, you'll own ₹2 lakh after split. Only the number of shares and price per share change proportionally. It's like exchanging one ₹100 note for two ₹50 notes - same total value.
Companies split stocks to: 1) Make shares more affordable for retail investors, 2) Improve stock liquidity and trading volume, 3) Attract more investors by reducing per-share price, 4) Signal management confidence in company prospects. High-priced stocks like ₹5,000+ often split to ₹1,000-2,000 range.
Generally positive! Splits often signal company confidence and growth. They improve affordability and liquidity. Historical data shows stocks often perform well post-split due to increased investor interest. However, the split itself doesn't create value - focus on company fundamentals.
Reverse split reduces share count and increases price. Example: 2:1 reverse split means every 2 old shares become 1 new share, and price doubles. Companies use reverse splits to: 1) Meet minimum price requirements for exchange listing, 2) Improve stock perception (penny stocks to respectable prices).
Stock splits don't trigger capital gains tax. Your original purchase date and average cost basis remain the same, just divided proportionally across more shares. Example: Bought 100 shares at ₹1,000 (₹1L total). After 1:2 split, you have 200 shares at ₹500 average cost (still ₹1L total cost).
The record date determines eligibility. If you hold shares on record date, you'll receive split shares. The credit typically happens within 2-3 days after the split effective date. Your broker automatically updates your holdings with new quantity and adjusted price.
Stock splits are typically announced weeks before execution. Price often rises between announcement and split due to positive sentiment. Post-split, improved affordability can drive further demand. However, make decisions based on company fundamentals, not just the split event. Don't overpay due to split hype.