Stock splits

V

vivek_s

Member
#1
#1
Hello everyone, I'm still a novice to trading in the stock market and have a question about stock splits.

For example Edelweiss' stock split went into effect today. I believe the quoted terms were "Rs 5 to Rs 1".

Now how would the previous prices be adjusted for the split? The previous day's close was Rs 584. Assuming I bought it at this price, what would my adjusted price be after the split? I assumed it was a straight division (i.e 584/5) but that clearly isn't the case.

Thanks in advance.
 
A

asnavale

Well-Known Member
#2
#2
vivek_s said:
Hello everyone, I'm still a novice to trading in the stock market and have a question about stock splits.

For example Edelweiss' stock split went into effect today. I believe the quoted terms were "Rs 5 to Rs 1".

Now how would the previous prices be adjusted for the split? The previous day's close was Rs 584. Assuming I bought it at this price, what would my adjusted price be after the split? I assumed it was a straight division (i.e 584/5) but that clearly isn't the case.

Thanks in advance.
Click to expand...
EDELWEISS has split into 5 shares for each of them you had earlier, So, divide by 5 bis correct. But along with split it has 1:1 bonus which means you get 1 bonus share for each share you hold. That makes the total 10 shares in place of 1 you had earlier. So, today price has to be adjusted by dividing with 10. So, Rs.584 becomes 58.4.

-Anant
 
T

travis

New Member
#4
#4
Nitin Fire Protection Ltd board shall discuss stock split and dividend ratio & bonus to its current share holders on Friday ,13August 2010.The company had given a 30 % dividend last year
 
You must log in or register to reply here.
Thread starter Similar threads Forum Replies Date
P Stock Splits: Are They Good or Bad? General Trading & Investing Chat 13
DeusXMac 8 Companies That Could Issue the Next Stock Splits Equities 0
M Any stock splits happened today in nse? Equities 0
A how to adjust for stock splits? Advanced GET 2
W Stock splits and Long term Charts Technical Analysis 1

Similar threads