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Glossary · PSX term

Share split.

A share split divides each share into more shares with a lower face value, without changing total value.

Definition

Splitting reduces the price per share to make it more accessible, but every shareholder's total holding value stays the same. It changes the share count and price, not the underlying business.

Worked example

In a 2-for-1 split, a Rs. 200 share becomes two Rs. 100 shares, and a holder of 100 shares now owns 200.

Related on PSX Clarity

Term
Reverse split
Term
Bonus shares
Term
Face value
Term
Book value

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