A stock split is a corporate action in which a company divides its existing shares into multiple shares to boost their liquidity. Although the number of shares outstanding increases by a specific multiple, the total value of the shares remains the same compared to pre-split amounts, as the split does not add any real value.
Example: If a company with shares priced at ₹100 announces a 2-for-1 stock split, each existing share is divided into two. Consequently, the share price is halved to ₹50, but the total investment value for shareholders remains the same.
Impact on Shareholders: 1. Increased Number of Shares: Shareholders will own more shares post-split, proportional to their existing holdings. 2. Unchanged Investment Value: The overall value of the holdings remains the same immediately after the split.

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Why are stock split shares not visible in the account.