Share market basics
A corporate action that divides each share into several shares of lower face value, cutting the price proportionally without changing the company's value.
A stock split divides existing shares into more shares of smaller face value. In a 1:5 split, each ₹10 face value share becomes five ₹2 shares, and the price falls to roughly a fifth. If you held 100 shares at ₹4,000, you hold 500 at about ₹800 afterwards; the total value, ₹4,00,000, is unchanged. Companies split to make the share price look affordable and to improve liquidity, since many retail investors are put off by a four-figure price. A split changes nothing about the business, its profits or your ownership percentage. Charts adjust historical prices so the split does not appear as a crash. Prices sometimes rise around split announcements on sentiment, and sometimes do not. A bonus issue is similar in effect but works by issuing extra shares from reserves. Check the record date to know whether you qualify.
VideoA share is a portion of a company. The share market is where those portions change hands. Here is how it works, what you can trade in it, and why most people who trade actively lose money.
VideoThe share market runs on two activities that look alike and are nothing alike. Investing is owning a business for years. Trading is profiting from price moves over hours or weeks. Mixing them up is behind most early losses.
VideoTrading comes in a few distinct forms, and the one you pick decides how much time, capital and stress it takes. This lesson explains intraday, swing, positional, futures and options trading with Indian examples.
