What is Record Date & Ex Date In Stock Split In Hindi

In the context of a stock split, the terms "Record Date" and "Ex-Date" (or "Ex-Split Date") are important for determining which shareholders will be affected by the split and when the split takes effect. Here's what each term means:

Record Date
Definition: The record date is the cut-off date established by a company to determine which shareholders are eligible to receive additional shares resulting from the stock split.
Significance: Shareholders who are recorded in the company's books as of the record date will be entitled to receive the new shares issued in the split.
Example: If a company sets a record date of July 10 for a 2-for-1 stock split, shareholders who own the stock by the end of the trading day on July 10 will receive one additional share for every share they own.
Ex-Date (Ex-Split Date)
Definition: The ex-split date is the date on which the stock starts trading at its new split-adjusted price. Typically, the ex-date is set one business day after the record date.
Significance: On the ex-split date, the stock price adjusts to reflect the stock split. If the stock is splitting 2-for-1, the price will be approximately halved, and the number of shares outstanding will double.
Example: If the record date is July 10 and the stock is splitting 2-for-1, the ex-split date might be July 11. On July 11, the stock will begin trading at its new price, reflecting the split.
Timeline Example
Declaration Date: The company announces the stock split and the dates involved.
Record Date: July 10 (the company checks its records to see who the shareholders are).
Ex-Split Date: July 11 (the stock begins trading at its new split-adjusted price).
Distribution Date: The date when the new shares are actually distributed to the shareholders. This date can be the same as the ex-date or shortly after.
Key Points
On the record date, the company determines the list of shareholders who will receive additional shares from the stock split.
On the ex-split date, the stock price adjusts to reflect the split, and trading begins with the new share price.
Understanding these dates is crucial for investors who want to know how a stock split will affect their holdings and when the changes will be reflected in their portfolio.
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