What is a Share Split and how does this affect me?
A share split is when a company divides its existing shares into multiple shares, thus increasing the number of shares a company has on issue. This is usually done when the share price is relatively high. The value of the company does not change, but more shares become available, and this results in greater liquidity.
Example: You own 100 XYZ shares and they are valued at $1 each for a total value of $100. A 1:10 share split means every 1 share you own you will now own 10. In addition, the value of each share will decrease from $1 to $0.1 each.
Under a share split the value of your investment will remain the same. As illustrated above, your investment value is $100 but you will own 1,000 shares valued at $0.10 each.
When a share split occurs, the Activity tab in your Superhero Account will show:
Your ABC shares were consolidated at a 1:10 ratio.