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Split Ratio

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Split Ratio
Following a stock split, a ratio of the new number of shares outstanding to the old one. This shows an investor by how much a publicly-traded company has split its stock. The higher a split ratio is, the more the company's share price drops.

split ratio
The ratio by which the number of a firm's outstanding shares of stock are increased following a stock split. For example, a two-for-one split results in twice as many outstanding shares, with each share selling at half its pre-split price. The higher the split ratio, the greater the reduction in the price of the stock.


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A category is the firms which went for a split with less than 1:5 ratios, category B is split 1:5 to 1:9 and Category C is split ratio with more than 1:10 and above Table 3 compares 3 year pre average dividend rate with that of post dividend rate.
Crucially, the splitter maintains the required split ratio even as the SAP rate is increased or decreased.
 
 
 
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