I experienced a stock split for the first time. I was aware of the definition but when I experienced it I was happy at one side and little bit confused. Recently in my portfolio I had a share of twenty. This was split, for one share I got 10 shares. So my total stock in the portfolio was 200 hundred in total. Wow a good number. So I applied a simple maths
If I had a stock of 1000 and there was a stock split. The total stock in my portfolio will be 1000*10=10000
And if this trend continues and I begin to hold the stock, after five years the company gives again a stock split for one stock ten stock. Now there is 10000 shares I am holding and multiplied by ten will become One Lakh shares.
To become ten lakh share hope again after five years it will give a split. So the total stock will be ten lakhs stocks in my portfolio. And if this happens it might take 15 years as my calculations is based on a assumption, a stock spilt might happen on a average of five years
After fifteen years if I get a dividend of say one rupees. It will be ten lakh rupees. This is the bright side of thinking but there are multiple factors which affect the company and stock. If my plan is executed accordingly I can be financially independent.
If I had a stock of 1000 and there was a stock split. The total stock in my portfolio will be 1000*10=10000
And if this trend continues and I begin to hold the stock, after five years the company gives again a stock split for one stock ten stock. Now there is 10000 shares I am holding and multiplied by ten will become One Lakh shares.
To become ten lakh share hope again after five years it will give a split. So the total stock will be ten lakhs stocks in my portfolio. And if this happens it might take 15 years as my calculations is based on a assumption, a stock spilt might happen on a average of five years
After fifteen years if I get a dividend of say one rupees. It will be ten lakh rupees. This is the bright side of thinking but there are multiple factors which affect the company and stock. If my plan is executed accordingly I can be financially independent.
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