New Delhi, April 22 -- Listed companies opt for various corporate actions to address the interests of shareholders, increase profitability or for corporate restructuring. One such corporate action is a stock split.

A stock split is a corporate action that occurs when a company issues additional shares to shareholders, typically to boost liquidity as the price of the shares decreases after the split. The total number of shares issued is increased by a specified ratio based on the shares held previously. However, the total value of the investment remains the same.

If a stock with a face value of Rs.20 undergoes a 2:1 stock split, the face value of the share decreases from Rs.20 to Rs.10. Hence, the number of shares owned doubles with a st...