In a stock split, the face value of each share decreases, but the total investment value remains unchanged.
Example of a 10:2 Stock Split:
- Before the Split: 1 share with a face value of ₹10.
- After the Split: You will hold 5 shares, each with a face value of ₹2.
How it Works:
- Before the split: 1 share × ₹10 = ₹10 (total value).
- After the split: 5 shares × ₹2 = ₹10 (total value).
The split increases the number of shares but keeps the total investment value the same.