The Reason Behind the Drop
The decline coincided with the stock trading ex-split starting today.
What is an Ex-Split?
An ex-split occurs when a company divides its shares, increasing the total number but reducing individual share value.
Impact on Shareholders
While the share price drops, the number of shares owned increases proportionally, maintaining total investment value.
Why Companies Opt for Stock Splits?
Stock splits make shares more affordable for retail investors, increasing liquidity and market participation.
Market Sentiment
The 4% drop reflects initial market adjustments as investors react to the split announcement.
Monitoring Shriram Finance
Keep an eye on Shriram Finance's performance post-split for potential investment opportunities.
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