What is the story about?
Shares of Tata Investment Corporation, the Tata Group holding and investment company surged as much as 7% on Tuesday, October 14, after the stock began trading adjusted for its stock split.
Tata Investment Corporation had earlier announced that it will be splitting one share with a face value of ₹10 into ten shares of a face value of ₹1. This was the first and the only stock split carried out by the Tata Group company.
Today is the record date for the stock split, which means that shareholders who had shares of Tata Investment in their portfolio as of closing on Monday, will be eligible for the stock split. Those who buy the shares today will not be eligible.
Here's how it will work:
For example, if you had 100 shares of Tata Investment worth ₹1 lakh, a 1:10 stock split would mean that 100 shares get converted into 1,000 shares, but the value of those shares remains the same.
The stock price adjusts accordingly to the stock split ratio, as has been the case with Tata Investment as well.
Companies generally carry out a stock split to make it easier for shareholders to buy or sell their shares, as it increases the liquidity in the stock. A stock split divides a company's stock into more shares, lowering the price and increasing the number of shares available to trade.
Shares of Tata Investment Corporation are trading 5.5% higher after adjusting for the stock split, at ₹1,047. The stock is up for the second day running, after having gained nearly 4% on Monday as well.
Tata Investment Corporation had earlier announced that it will be splitting one share with a face value of ₹10 into ten shares of a face value of ₹1. This was the first and the only stock split carried out by the Tata Group company.
Today is the record date for the stock split, which means that shareholders who had shares of Tata Investment in their portfolio as of closing on Monday, will be eligible for the stock split. Those who buy the shares today will not be eligible.
Here's how it will work:
For example, if you had 100 shares of Tata Investment worth ₹1 lakh, a 1:10 stock split would mean that 100 shares get converted into 1,000 shares, but the value of those shares remains the same.
The stock price adjusts accordingly to the stock split ratio, as has been the case with Tata Investment as well.
Companies generally carry out a stock split to make it easier for shareholders to buy or sell their shares, as it increases the liquidity in the stock. A stock split divides a company's stock into more shares, lowering the price and increasing the number of shares available to trade.
Shares of Tata Investment Corporation are trading 5.5% higher after adjusting for the stock split, at ₹1,047. The stock is up for the second day running, after having gained nearly 4% on Monday as well.
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