What is the impact of Face Value Split of shares?

Impact of Face Value Split

1. Increased Liquidity: The number of shares available for trading increases, enhancing liquidity.
2. Affordability: Shares become more affordable for small investors due to the reduced price per share.
3. Market Perception: Stock splits are often perceived positively as a sign of the company’s growth, potentially attracting more investors.
4. No Change in Market Capitalization: The total market value of the shares remains the same.
5. Adjustments in Financial Metrics: Per-share metrics, like Earnings Per Share (EPS) and Dividends Per Share, are adjusted to reflect the increased number of shares.

CLICK HERE – to see impact of split shares with a real-world example (calculations)