Share Split (share sub-division)

KPMG · 1 Share Split (share sub-division) Wed May 11, 2011 9:19 am

KPMG

Manager - Equity Analytics

Posts : 114
Equity Stars : 5241
Reputation : -4
Join date : 2011-02-05
Age : 47
Location : Dehiwala

Hi Dear friends,
AHPL announced share split 1 for 2. pls advice me wat is the consequences of this decision and how will it effect to share price in short term, medium and long term.
Thanking u in advance.

Happy Day.

Slstock · 2 Re: Share Split (share sub-division) Wed May 11, 2011 9:21 am

Slstock

Director - Equity Analytics

Posts : 6610
Equity Stars : 13569
Reputation : 1158
Join date : 2011-01-22

KPMG wrote:Hi Dear friends,
AHPL announced share split 1 for 2. pls advice me wat is the consequences of this decision and how will it effect to share price in short term, medium and long term.
Thanking u in advance.

Happy Day.

Short term I dunnot know as the market is unstable still. Long term AHPL is one of the betetr shares in Hotel and Property.

KPMG · 3 Re: Share Split (share sub-division) Wed May 11, 2011 12:06 pm

KPMG

Manager - Equity Analytics

Posts : 114
Equity Stars : 5241
Reputation : -4
Join date : 2011-02-05
Age : 47
Location : Dehiwala

slstock wrote:

KPMG wrote:Hi Dear friends,
AHPL announced share split 1 for 2. pls advice me wat is the consequences of this decision and how will it effect to share price in short term, medium and long term.
Thanking u in advance.

Happy Day.

Short term I dunnot know as the market is unstable still. Long term AHPL is one of the betetr shares in Hotel and Property.

Oh.. sorry friend i wanted consequences of share split to a share price in general but not specific.

Slstock · 4 Re: Share Split (share sub-division) Wed May 11, 2011 12:21 pm

Slstock

Director - Equity Analytics

Posts : 6610
Equity Stars : 13569
Reputation : 1158
Join date : 2011-01-22

KPMG wrote:

slstock wrote:

KPMG wrote:Hi Dear friends,
AHPL announced share split 1 for 2. pls advice me wat is the consequences of this decision and how will it effect to share price in short term, medium and long term.
Thanking u in advance.

Happy Day.

Short term I dunnot know as the market is unstable still. Long term AHPL is one of the betetr shares in Hotel and Property.

Oh.. sorry friend i wanted consequences of share split to a share price in general but not specific.

Maybe this will help?

Ex : X company share is Rs 100
10:1 subdividions announced.
After subdivision there will be 10 times shares than before with trading vaolue Rs 10.

There is no loss per say but after sub division of the share, if it trades less than Rs 10 then ofcourse there is the natural loss as with any other share.

One thing to note. WHen an illquid share gets spilt in a bear market it can go down ( it has happened to LOLC,SPEN,MAL etc for a while before it can go up. In a bull market it can go up. Depends on timing.

Also note the extra liquidity ( more sharesin the market ) can go either way. If the original share was overvalued before split then chances are that the price can even reduce when it comes to market and when there are more share to trade.