RupeeCase Education . Corporate Finance . 1 of 3
Stock Splits and Bonus Issues
The Stock Split
That Changed
Nothing
Cousin forwarded a screenshot. Board approved a 1:1 split. Price halved to Rs 100. His message: "It just got cheaper." Cheaper than what?
Before Split . 1000 Shares
200
Rs per share
After Split . 2000 Shares
100
Rs per share
Total portfolio value in both cases Rs 200000
The price halved. The share count doubled. The value did not move by a single rupee.

A stock split changes the label on the screen. It does not change the business, the earnings, or what your holding is worth.