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Usually when a stock splits, the investor is left with more number of stock units than what he held before. If a stock of face value Rs. 10 declares a split of 1:10 it means that the new face value will be Rs. 1 and the investor will have 10 times the number of shares when compared to what he had previously. So if he held 100 shares before the split, he will have 1000 shares now. Also the share's market price will come down correspondingly and the investor can buy more shares from the market at a reasonable price.

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15y ago

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