Upcoming Stock Splits
Frequently Asked Questions
A stock split occurs when a company issues more shares to increase the stock's liquidity. The most typical split ratios are 2-for-1 and 3-for-1 (also referred to as 2:1 and 3:1). Accordingly, each stockholder will receive two or three shares, respectively, for each share they had prior to the split.
Varun beverages recently did a stock split on 15th June, 2023. It split its shares in the proportion of 1:1
In year 2023, in total 60 companies announced their stock split.
Prior to the stock split record date, the price typically rises due to increased demand, and following the ex-split date, the price declines in accordance with the split ratio and may drop even further if many investors choose to book profits.
Usually, when a stock split is announced, the price of the stock increases. Investors might profit from this in an ideal world, but sadly, trading on knowledge of a stock split before it is publicly disclosed is regarded as insider trading.
Unfortunately, a stock split has no effect on an investor's equity.