A Split Ratio defines the terms of a stock split—a corporate action in which a company divides its existing shares into multiple new shares to improve affordability and liquidity. For example, a 2:1 split ratio means every existing shareholder receives 2 shares for every 1 share held, at half the original price. The company's total market capitalisation remains unchanged, but the lower per-share price can attract a broader base of retail investors. Common split ratios in India include 2:1, 5:1, and 10:1.
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