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Rajeev Desai / ARTICLE

Let me tell you something... Splitting of Face Value- FV....is never a good idea. Why? Because it will increase the liquidity. Why increasing liquidity is bad? Because the stock moved on demand and supply. Demand means buying and supply means selling. Now if there are more seller then buyers , tell me how stock will move up? When there will abandon of supply , how will the stock move up? For anything to move up, be it Crude, Gold, Silver, Copper, Stock shares, the supply needs to be Less and demand should be more then only stock price or any commodities price will go up!! This is a very simple common sense thing to understand. Suppose, Co decide to split share FV from 10 to 5, means, now liquidity has doubled... Split to Fv 10 to FV 2, liquidity went up, 5 times, FV 10 to FV 1, liquidity went up by 10 times. These all splitting is nothing but increasing liquidity which actually hinders price going up.. I will never understand who give such advice to management to Split FV? To any Co.. Jitni liquidity jyada, utna problem ayega stock ko upper jane main.... Equation- Supply more then Demand, price don't Move Up.... In other word, floating stock needs to get Cornered.... I think, no one will explain you better then this....!! And that is why I don't like Split shares.....get it?

Published Jul 14, 2026Updated Jul 14, 20263 min read
Let me tell you something... Splitting of Face Value- FV....is never a good idea. Why? Because it will increase the liquidity. Why increasing liquidity is bad? Because the stock moved on demand and supply. Demand means buying and supply means selling. Now if there are more seller then buyers , tell me how stock will move up? When there will abandon of supply , how will the stock move up? For anything to move up, be it Crude, Gold, Silver, Copper, Stock shares, the supply needs to be Less and demand should be more then only stock price or any commodities price will go up!! This is a very simple common sense thing to understand. Suppose, Co decide to split share FV from 10 to 5, means, now liquidity has doubled... Split to Fv 10 to FV 2, liquidity went up, 5 times, FV 10 to FV 1, liquidity went up by 10 times. These all splitting is nothing but increasing liquidity which actually hinders price going up.. I will never understand who give such advice to management to Split FV? To any Co.. Jitni liquidity jyada, utna problem ayega stock ko upper jane main.... Equation- Supply more then Demand, price don't Move Up.... In other word, floating stock needs to get Cornered.... I think, no one will explain you better then this....!! And that is why I don't like Split shares.....get it?