How to split???

Dear Friends,

I am using Amibroker and need help on the SPLIT issue....
In the Split window, what to enter for Ratio?

Please....tell me....

JB

dear john,

1) go to Amibroker >> >> database purify >>

2) enter the reference symbol. this may be the most actively traded stock in the excahange of your data. ( RELIANCE is probably the most suited. i use BHEL for NSE. )

3) check 'report possible splits'. to avoid confusion initially, uncheck all other options.

4) enter the detection threshhold % (you are permitted to enter between 30% & 90 % : a high value, may not show some of the splits. a low value may show some extra stocks also as splits. : i am comfortable with 50% setting)

5) select 'ALL symbols' & 'ALL quotes' when you are running ffor the first time.

6) press 'analize'

7) the output will show the columns symbol, date & possible 'unadjusted split'. please understand that the split & the rato are only suggestions and to be conffffirmed by other sources.

8) it is preferable to confirm the 'possible split' from other sources. i find this NSE link helpful for confirmation of a split for a stock from the announcements:
http://www.nse-india.com/content/corporate/corp_introduction.htm

i also find the below link useful, though not & complete:

http://www.investsmartindia.com/iil_new/stockwatch/rights.aspx

9) after the confirmation of a split & the RATIO, you may double click on the database purify window. this action will take you to the corresponding stock chart.

10) now go to Amibroker >> symbol >> split >>
a window will open, where you will be shown the date & the ratio as predicted by amibroker. you may make changes as necessary & press the OK button.

11) please note that bonus & splits are considered as the same & shown as splits. the number indicated in the RATIO field is the number of shares EACH share will be split into. you can enter fractions also in this field, as required. sometimes, stocks are split & on the same date bonis shares are issued.
the ratio to be entered = split ratio * bonus ratio. this bonus ratio has a different meaning & value than the conventional parlance in India. ( 1:1 bonus means that an additioanal share is issued for every share held. but in AB, the corresponding ratio will be 2:1, meaning that the earlier ONE share has become TWO.

hope this answers the posted query.

all the best.
MurthyMSR

Excellent explanation Murthygaru. with this guidance I hope any body new to AB will easily accomplish the job. Thanks for such a lucid and easy to understand explanation.

-Anant

Dear Murthy,

Excellent One from you.
Great...and thanks for the reply....

Have a nice day
JB

Dear Murthy

I have done it on Geojit Fin for BSE data. By doing so the gap after split had been filled. Great....!! Now please tell me one more thing, now the analysis should be done on this new chart or the older one? Whats the difference?

Expecting a superb answer...

Have a nice day
JB

dear john,
after the split/bonus is adjusted, what you will see in AB is only the new chart. so, TA is to be done with the new chart only.

assume a split of 2:1. what really happens in the process of the split adjustment is that the prices before the date of split will be reduced to half and the volumes will be doubled. by this way, the turnover remains unchanged. hope your query is answered.

you may further to an earlier post at:
http://www.traderji.com/51289-post9.html

all the best.
murthymsr

dear murthy

got it...
thanks again...

have a nice day
jb

Hi MurthyMSR,

it has bee explained very nicely simple language thanks for the same.

Balram