A company issues share certificates to every shareholder of the Company. The split of Share Certificate means dividing one share certificate into various share certificates. Once Share split is done and new share certificates are issued, an old share certificate shall stand cancelled.
Sample Meeting Minutes : Share split
A company has to call for Board Meeting for Share Split procedure to be done. The Chairman informs the Board about the Split of Share of the specific shareholder. Details of share certificate which has to be split is discussed in the Board Meeting and a resolution has to be passed regarding the same and also taken on record.
FAQs
The certificates include information such as the number of shares owned, the date when purchased and an identification number. When a stock splits, the company divides its existing shares into multiple shares in an attempt to boost the liquidity of the shares.
The company’s market capitalization, equal to shares outstanding multiplied by the price per share, isn’t affected by a stock split. If the number of shares increases, the share price will decrease by a proportional amount.
Hello @Simmi_Singh
A Share Split results into increase in the number of shares and reduction in the per share price of the Company.
Hope this helps!