New Delhi, Aug. 8 -- Shares of fast-moving consumer goods (FMCG) maker Nestle India opened at Rs.1,122 apiece on the National Stock Exchange on Friday, August 8, as against its last closing price of Rs.2,234.60, signalling a 49.7% downtick over the last close. But is the stock really down by a whopping 50%?

Well, the answer is no. Today, August 8, is the record date for the 1:1 bonus share issue announced by Nestle India. This means that investors who held one share of the company of Rs.1 are entitled to one more share of Rs.1. The total number of shares in the market doubles, but the price per share is adjusted downward, keeping the overall value of the investment the same.

So, the 50% drop is not actually a loss in value - it's just a...