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Stock split by infosys
1st Dec 1999 Ryan Cardoz @pcsbom.patni.com
Could anyone explain in brief and in simple language what Stock split means ,and the advantage the company or the share holder gets .Finally who benifits from this . Ryan
1st Dec 1999
MohanaVamsi Potluru @who.net
This is a simple article... to long to post to the list. http://www.invest-faq.com/articles/stock-split.html
2nd Dec 1999
vikram @kshitij.com
In a Stock Split, the Face Value of the share gets reduced. In the case of Infosys, the face value has got reduced from Rs 10 to Rs 5. Implications... 1) Existing shareholder ends up holding 2 shares of Rs 5 each, instead of 1 share of Rs 10 (Face Value) 2) The Quoted Market Price gets split proportionately. So, in this case, the price should get halved. Pls understand it is now the price of a new share of Rs 5 face value. In actuality nothing happens to the value of the total holdings with a shareholder. 3) Due to the split, it becomes easier for a new investor to invest in Infosys - he can buy a share of Face Value Rs 5/- at the "lowered" market price. 4) Thus, the distribution of the share amongst investors increases. This being the case, the chances of a sharp decline in the price of the share tends to decrease. The wider distribution and the greater degree of immunity against a downward move are the benefits. Hope this helps. Am open to corrections. Regards, Vikram Murarka Director Kshitij Consultancy Services Flat 4, Vinay Bhawan, 36/1, Jatin Das Road Calcutta - 700 029 INDIA [email protected] http://www.kshitij.com Ph: 00-91-33-4635247, 4635246
