Stock Split & Bonus Impact Calculator
Calculate adjusted price per share after stock splits or bonus issues
Stock Details
₹
Common Examples:
Adjusted Price Per Share
₹500.00
After 2:1 split
Holdings Summary
Original Shares
100
New Shares
200
Additional Shares Received+100
Original Price
₹1,000.00
Adjusted Price
₹500.00
💎 Total Portfolio Value
Before:₹1,00,000.00
After:₹1,00,000.00
✓ Value remains unchanged (as expected)
Understanding Stock Splits
A stock split increases the number of shares by dividing existing shares into multiple shares.
- •2:1 split: Each share becomes 2 shares, price halves
- •Purpose: Make stocks more affordable for retail investors
- •Total value: Your portfolio value remains exactly the same
- •Example: 100 shares @ ₹1,000 = ₹1,00,000 → 200 shares @ ₹500 = ₹1,00,000
Understanding Bonus Issues
Bonus shares are additional shares given free to existing shareholders.
- •1:1 bonus: 1 free share for every 1 share held (100% bonus)
- •Purpose: Reward shareholders using company reserves
- •Price adjustment: Stock price reduces proportionally
- •Example: 100 shares @ ₹500 = ₹50,000 → 200 shares @ ₹250 = ₹50,000
💡 Key Takeaways
•
No Wealth Change: Splits and bonuses don't create or destroy wealth
•
Tax Neutral: No capital gains tax on receiving bonus/split shares
•
Liquidity Boost: Lower price can increase trading volumes
•
Perception: Often seen as positive signal but doesn't change fundamentals