• contact@stockmarketsimplified.com
stockmarketsimplified stockmarketsimplified
  • Home
  • Glossary
  • Contact
Search the Site
Popular Searches:
iPhone Artificial Intelligence Smartphones
Recent Posts
small-cap stock
What Is a Small-Cap Stock?
October 3, 2026
Investing in an IPO
10 Things to Check Before Investing in an IPO
October 2, 2026
Large-Cap Stock
What Is a Large-Cap Stock?
October 1, 2026
stockmarketsimplified stockmarketsimplified
  • Home
  • Glossary
  • Contact
Popular News
Turnaround Stocks
What Is a Turnaround Stock?
September 29, 2026
Concentration Risk
What Is Concentration Risk? 
September 28, 2026
implied volatility
What Is Implied Volatility?
September 27, 2026
Follow Us
Subscribe
Home/Glossary/Stock Split
Glossary

Stock Split

A stock split is when a company gives extra shares to its existing shareholders. The price of shares lowers but your overall investment value remains unchanged. It is done so as to make the shares...

Suhani
Suhani
December 24, 2024 One Min Read
415 0

A stock split is when a company gives extra shares to its existing shareholders. The price of shares lowers but your overall investment value remains unchanged. It is done so as to make the shares more affordable; hence, pulling in more investors.

What It Means

When a company executes stock split, it indicates that the company is doing fine. It occurs when the company’s shares are valued highly, which puts them out of the reach of many. The reason for splitting the shares is to ensure that it is within the means of many.

Example

You own 10 shares valued at ₹1,000. After a 2 to 1 split, you will now possess 20 shares with a value of ₹500. In essence, total investments comes to 10,000.

Why Companies Do It

  • Make shares cheaper.
  • Attract more Investors.
  • Show growth expectation.

Benefits 

  • Increases potential shareholders.
  • More share transactions.
  • Indicates that the company’s net worth is increasing.

Risks

  • You do not get a corresponding rise in the value of your investment.
  • The prices of the shares may be volatile.

Real Life Example: Bharti Airtel (2021)

In 2021, Bharti Airtel executed a stock split using the ratio 5:1.

  • Before Split: 1 share = ₹600
  • After Split: 5 shares = ₹120

This further lowered the price of Airtel’s shares thus making it more achievable to many investors.

Tags:

glossary

Share Article

Suhani

Suhani Content Writer

Suhani is a skilled finance content writer dedicated to creating insightful, engaging, and reader-focused content. With a deep understanding of personal finance, investments, market trends, and financial planning, Suhani excels at turning complex financial topics into simple, actionable insights. From demystifying tax strategies to exploring smart investment options, Suhani provides readers with the knowledge they need to achieve financial success. Known for a professional yet approachable writing style, Suhani blends research, clarity, and creativity to craft content that resonates with diverse audiences. Trusted by clients and readers alike, Suhani is your go-to expert for finance content.

Previous Post

ESG Investing: How to Pick Sustainable Stocks for Your Portfolio

Next Post

Volatility

Top Authors
Suhani
SuhaniContent Writer
104 Posts
Manaswi Agarwal
Manaswi AgarwalContent Writer (Finance, Stock market)
50 Posts
Top Categories
Stockmarket Simplified Stockmarket Simplified
50 Posts
Glossary Glossary
61 Posts
Most Viewed
Turnaround Stocks
What Is a Turnaround Stock?
September 29, 2026
Concentration Risk
What Is Concentration Risk? 
September 28, 2026
implied volatility
What Is Implied Volatility?
September 27, 2026

Related Posts

small-cap stock
Glossary
What Is a Small-Cap Stock?
Suhani
By Suhani
Large-Cap Stock
Glossary
What Is a Large-Cap Stock?
Suhani
By Suhani
Turnaround Stocks
Glossary
What Is a Turnaround Stock?
Suhani
By Suhani
Concentration Risk
Glossary
What Is Concentration Risk? 
Suhani
By Suhani
instagram image
instagram image
instagram image
instagram image
instagram image
instagram image
Instagram
stockmarketsimplified stockmarketsimplified
  • contact@stockmarketsimplified.com
Helpful Links
  • Glossary
  • Contact
  • Privacy Policy
  • Terms And Conditions
Popular Posts
What Is a Small-Cap Stock?
Suhani
October 3, 2026
10 Things to Check Before Investing in an IPO
Suhani
October 2, 2026
What Is a Large-Cap Stock?
Suhani
October 1, 2026
Follow Us
Facebook
Twitter
Youtube
Instagram
Stay Informed
©Copyright 2026. stockmarketsimplified.com. All Rights Reserved