Please consider the following scenario -> a stock A is at
current market price = 100 and
face value =10
1} Over a period of say 5 years it grows to 1000 rupees.
2} Suppose the management decides to Split it to new face value = 1 rupee. And the stock price after split is 100 rupees.
3} After the split, the stocks grows again and in another 5 years it again reaches to 1000 rupees.
4} The management again decide to split this stock
My question is --> Now that the stock was already split once from face value 10 to face value 1, How can the company split this stock again ?
I mean what will be the new face value - since its already 1, can it be split ?
current market price = 100 and
face value =10
1} Over a period of say 5 years it grows to 1000 rupees.
2} Suppose the management decides to Split it to new face value = 1 rupee. And the stock price after split is 100 rupees.
3} After the split, the stocks grows again and in another 5 years it again reaches to 1000 rupees.
4} The management again decide to split this stock
My question is --> Now that the stock was already split once from face value 10 to face value 1, How can the company split this stock again ?
I mean what will be the new face value - since its already 1, can it be split ?
