SUBDIVISION OF SHARES - ECL

Akalanka · 1 SUBDIVISION OF SHARES - ECL Sun Apr 10, 2011 6:21 pm

Akalanka

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E-CHANNELLING PLC
Company ID: ECL
Date of EGM : 07.Apr.2011
Sub Division based on the shareholding as at end of trading on : 07.Apr. 2011
Period of Dealing Suspension (Both days inclusive): 08.Apr. 2011 to 12.Apr. 2011
Date of commencement of trading: 18.Apr.2011

I would like to know from the experts what is this subdivision of shares means and what does the days are reffer to....
study

mark · 2 Re: SUBDIVISION OF SHARES - ECL Sun Apr 10, 2011 6:39 pm

mark

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i'm not an expert.............

subdivision means dividing a one share to two shares.,it's like dividing something to two pieces......
if you have a one share,you will get two shares after the sub division.
as an example-you got 100 shares of NDB bought at 350,after the subdivision you will get 200 shares,but the price after subdivision will be (350/2)=175Rs.........
so after all no impact on price,but share volume increasing(liquidity increasing)...

*if you buy ECL 100 shares on 7th April,you will get 700 shares(1:7)......after subdivision.....but the price also divided by 7 times of traded price on 7th april....... Smile

http://www.cse.lk/cmt/uploadAnnounceFiles/111298371220_374.pdf

Akalanka · 3 Re: SUBDIVISION OF SHARES - ECL Sun Apr 10, 2011 6:56 pm

Akalanka

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wow . . thats poerfect and thank u very much

so will this cause increase liquidity of the shares leading to have an increased trading? Very Happy

mark · 4 Re: SUBDIVISION OF SHARES - ECL Sun Apr 10, 2011 7:02 pm

mark

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Akalanka wrote:wow . . thats poerfect and thank u very much

so will this cause increase liquidity of the shares leading to have an increased trading?

yup bro.........trade volumes will increase,this will let small investors to buy some shares..
also this will lead a share price to be stagnant for a while....... Cool