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STOCK SPLIT

By adding face value to quantity, so that the per-share price seems small and affordable.

Published by The Retail Trader · JUL 31, 2026 · Market Basics

Stock Split — increasing the quantity by adding the face value, so that the per-share price seems small and affordable. Total value does not change.

WHERE THIS FITS IN

This term comes under Market Basics, in the section "Corporate Action and IPO". Events coming from the company that silently change your holding:

RELATED TERMS TO READ

Other terms in this group — understanding them together is more useful:
• IPO
• FPO
• Listing Day
• Dividend
• Record Date / Ex-Date
• Bonus Issue
• Buyback
• Rights Issue
• Face Value

To read the entire group and all its examples in one place, see the journal "MARKET BASICS: ABC of Market" - this term has been taken from there.

This entry is for educational purposes only and is not a recommendation to buy or sell. Exchanges change charges, margins, lot sizes and expiry rules from time to time, so verify any figures with your broker or exchange.

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