North India Statesman
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There is an important news for those investing in the stock market. If you are interested in shares of small companies, then Titan Intech Limited (Titan Intech Ltd.) Keep an eye on the name shares.
Monday, ie tomorrow, is a big day for this company because its stock ‘Split’ Is going to happen This will directly affect its price and the number of shares you have.
What is stock split? Understand this in easy language
They understand this with a very easy example. Suppose you have a 100 rupee note. You break it and take 10 notes of 10-10 rupees. The total price (100 rupees) of your money remained the same, but now the number of notes with you increased from 1 to 10.
The same is going to happen with this stock. The company will divide one of its stocks into 10 small stocks.
What will be the effect on investors?
- Ratio: The company has announced a stock split in a ratio of 1:10.
- price: This means that if the share price on Friday closed at around Rs 105, its price from Monday also reduced ten times. 10.5 rupees Will be seen around
- Number of shares: If you had 1 share of this company, now in your demat account 10 shares Will appear. If you had 100 shares, they will be 1000. There will be no change in your total cost.
Record date is Monday
For Monday (today) Day of ‘Record date’ has been fixed. This means that people who had this share in the demat account till Friday, a stock in their account will automatically turn into 10 shares.
Why does the company do this?
Often companies do this when the price of their share increases greatly and small investors are not able to buy it easily. More and more people are able to buy it due to low price, which increases the loan liquidity in the market.
(Disclaimer: This is only for information. Investing in the stock market can be risky, so be sure to consult your financial advisor before taking any decision.)
