Stock Split Calculator
Key Takeaway
A stock split increases the number of shares while proportionally reducing the price per share. A 1:5 split on a ₹5,000 stock gives you 5 shares at ₹1,000 each , your total investment value stays the same.
Stock Split Calculator
Calculate adjusted shares and price post-split.
New Share Count
500
Adjusted Price per Share
₹500.00
What to do next
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Stock Split Share & Price Adjustment
Calculates the adjusted share count and nominal price per share after a corporate stock split split event.
Worked Example: Holding 100 shares at ₹2,500 during a 1:5 stock split
Stock Splits: Enhancing liquidity and accessibility of shares
Pooja owned 100 shares of a company trading at ₹2,500 per share. The company announced a 1-to-5 stock split to make the shares more affordable to retail investors.
Post-split, Pooja's share count increased to 500 shares, and the nominal stock price adjusted to ₹500 per share. Her total portfolio value remained unchanged at ₹2.5 Lakhs.
Stock splits increase outstanding shares and lower share prices proportionally, improving liquidity without changing market cap.
Stock splits do not add intrinsic value, but the lower share price often increases retail demand and trading volume in the stock.
Frequently Asked Questions
Does a stock split change my portfolio value?
No. A stock split multiplies your number of shares but proportionally reduces the price per share, keeping your total investment value identical.
Why do companies split their stock?
Companies split stock to lower the price per share, making it more affordable and accessible to retail investors, which increases trading liquidity.
Are stock splits taxable events?
No. Stock splits do not create a taxable event. Your total cost basis remains the same, but the cost basis per share is adjusted downwards.
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