Answer Posted / sandeep.puligilla
A corporate action in which a company's existing shares are
divided into multiple shares. Although the number of shares
outstanding increases by a specific multiple, the total
dollar value of the shares remains the same compared to pre-
split amounts, because no real value has been added as a
result of the split.
In the U.K., a stock split is referred to as a "scrip issue",
"bonus issue", "capitalization issue" or "free issue".
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