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When a company reduces the paid or face value of its shares, and issues further shares in the same proportion i.e. 100,000 RM 2 ordinary shares would be split into 200,000 RM 1 ordinary shares.
share split is when they want to make their stock price looks more affordable while the market capitalisation remains the same...to attract more buyers.. this is actually when their price becoming too expensive (a good thing)...it is opposite to share consolidation..,the latter will make a penny stock look more expensive... for 1 to 10 split, if you had got 1 share of 2 ringgit price after the split you will end up with 10 shares of 20 cents each...your whole investement value still the same
