I was recently looking at the financial charts of TCS(Tata Consultancy Services) and noticed that the TCS offered 1:1 bonus on 31st May, 2018.

I noticed that the price of the share stock did not change. So i went on some other sites to verify and found the same. Below are some snapshot of the that from different sites. Can some please explain if there has been a stock slit/bonus how come the price of the stock did not change.

Snapshot from Moneycontrol: enter image description here

Snapshot from Investing enter image description here

Snapshot from CapitalMarket enter image description here

2 Answers 2


Can some please explain if there has been a stock slit/bonus how come the price of the stock did not change

Before the stock split the stock was priced around 3500. Once a stock split happens, all financial sites factor the split and adjust the price. The reason for adjustment is to give a good comparison; else it will look like there was a 50% decline in the price. It will also help to find the actual effect of the split; i.e. whether the price moved up or down.

Related How does Yahoo finance adjust stock data for splits and dividends?


You would need to have remembered the actual stock price before, and compared it to the stock price now. E.g. I remember when GOOG had spent a couple years climbing to about $780, and then blam, it was $112. That was a 7:1 split.

Charts correct for the split. If you looked at a GOOG chart a week after the 7:1 split, the chart would show that GOOG had been in the $100 range the entire time. Working as intended.

As I am constantly explaining to my Board of Directors, business data has a purpose and the presentation should serve that purpose. For instance our business has gate revenue. We pay 10-20% to the booking company and credit card clearinghouse. The Board loves puffing up our numbers by claiming $24,000 gate (and $4000 fees) when the real spendable money from gate is only $20,000, and that is the number the Board should ponder.

So the charts are distilling the info down to what most chart users need to see: the actual market performance of the company. Showing a 2:1 lurch there would provide no useful info and only make the chart harder to read.


You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .