Stock Split seems not to have changed the Share Price. Why?

Question

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:

Snapshot from Investing

Snapshot from CapitalMarket

Answer 1

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?

Answer 2

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.