Explain the concepts of 'Stock Split' and 'Rights Issue'. Describe the adjustment processes for these corporate actions with the help of suitable examples.
Stock Split:
A stock split, also known as a share split or stock divide, is a corporate action in which a company increases the number of its outstanding shares by dividing existing shares into multiple new shares. The primary aim of a stock split is to make the shares more affordable for a broader range of investors while maintaining the overall market capitalization of the company. Stock splits do not have any impact on the total value of an investor's holdings in the company, as the share price decreases proportionally with the increase in the number of shares.
Adjustment Process for Stock Split:
When a company announces a stock split, it typically specifies the split ratio, such as 2-for-1, 3-for-1, or 5-for-1. This ratio ___ ________ ____ _______ __________ _______ __________ ___.
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