A stock split divides each existing share into multiple shares, at a proportionally lower price. For example, in a 1:2 split, 1 share worth ₹1,000 becomes 2 shares worth ₹500 each.
Why It Doesn’t Change Your Value
Your total holding value stays the same immediately after a split — you simply hold more, cheaper-priced units of the same total value. Companies typically do this to make individual shares more affordable and improve liquidity.
Related Reading
See the full explanation with a worked example in What Are Stocks? Ownership, Price, and Value Explained.