Key things to remember in a stock split



  • You don’t need to take any action. If you hold the stock on the record date, the split will be processed automatically, and the new shares will be credited to your demat account. 


  • Your demat balance and your holdings on app may take a short time to reflect the additional shares. During this window, you may still see your old quantity, and the new shares will appear once they are credited. You can trade only the shares that are already visible in your account. 


  • The stock price may show a huge drop on ex-split date. It is nothing to worry about. The price drop happened because now the number of shares increased and your holding value is still the same. 


  • A stock split does not make you richer. It only increases the number of shares you own while reducing the price per share, so the total value of your investment stays the same. 


  • The company itself doesn’t become more or less valuable because of a split. Only the share structure changes, not the business performance or fundamentals. 


  • A lower share price after a split doesn’t mean the stock is “cheaper” in value terms. It’s the same investment, just divided into more parts. So always evaluate the company based on its business, not the price tag alone. 


You can learn more about stock split, how they work and its impact on a company here

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