how does splitting of shares actually help the companies?

stock splitting and reverse splitting how does it actually work in the companies?

1 Answer(s)


when the share price becomes too high companies split the shares ,

*STOCK SPLIT-n new shares will be issued to an existing shareholder for every old share that he holds this 

*in case of splits , par value of existing share is reduced and no of shareswill increase proportionatly 

*REVERSE SPILT-if a companies percieves its stock price to be too low it can go for a reverse split

*an n:m split--n>m

*an n:m reverse split--n<m