Stock Spitting in SBI Bank - goCareer

Stock Spitting in SBI Bank

Recently I was looking for SBI bank shares, so start some research of the previous performance of the bank in share market. While I was doing my own research, I was noted some drastically fall in SBI share price in November 2014. I was totally awkward to see price fall of approximate 2400 Rs in just 1 day.
Stock Spitting in SBI Bank
SBI Share advance graph for 2014 to 2016
Now I was very curious to know what was the reason behind this big fall in SBI bank share price.
The questions which were in mind when I see this big fall were, What is the reason behind this fall in this share price? Is this due to heavy NPA in banks? etc etc.

When I did my research complete, it was very pleasing to know for me that this was not a fall in share price but this was share splitting in SBI bank.

What is Share Splitting?
This is a term usually use in financial market and share market. Stock splitting is done by companies when the price of a share of a company is too high or beyond the level of competitor share price. for e.g- when splitting in SBI price was done that time price of one share of SBI was 2900 level and at the same time, ICICI bank share price was at the level of 300 Rs.

Some times in banking exam questions can be asked related to financial terms so I have decided to share this with gocareer`s  readers.

Question- Which of the following terms is not related to banking/finance?
(1) Call Option
(2) Coupon
(3) Stock Splits
(4) Ablation
(5) None of these

Ans: (4)


Stock Spitting in SBI Bank Stock Spitting in SBI Bank Reviewed by Go Career on Thursday, July 06, 2017 Rating: 5
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