Hello everyone, I'm still a novice to trading in the stock market and have a question about stock splits.
For example Edelweiss' stock split went into effect today. I believe the quoted terms were "Rs 5 to Rs 1".
Now how would the previous prices be adjusted for the split? The previous day's close was Rs 584. Assuming I bought it at this price, what would my adjusted price be after the split? I assumed it was a straight division (i.e 584/5) but that clearly isn't the case.
Thanks in advance.
For example Edelweiss' stock split went into effect today. I believe the quoted terms were "Rs 5 to Rs 1".
Now how would the previous prices be adjusted for the split? The previous day's close was Rs 584. Assuming I bought it at this price, what would my adjusted price be after the split? I assumed it was a straight division (i.e 584/5) but that clearly isn't the case.
Thanks in advance.