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Stock Split
In a stock split, a company divides each existing share into multiple shares, lowering the price per share proportionally. A 1:5 split turns one ₹5,000 share into five ₹1,000 shares. The company’s total value is unchanged.
Why It Matters
Splits make shares easier to buy in small amounts, but they do not make anyone richer.
In India
Owning one share worth ₹10,000 or ten shares worth ₹1,000 each is exactly the same investment.
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