What is stock split in SAP FIN-FSCM-TRM-TM - Transaction Manager?

SAP Term: stock split

• Component: FIN-FSCM-TRM-TM

• Component Name: Transaction Manager

• Description: An increase in the number of outstanding shares of a company's stock and a corresponding decrease in the share price decided by the board of directors and the shareholders to make them more attractive for investors. This is usually the case when the stock price has increased significantly.

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• Key Concepts: 
  Stock split is a transaction in SAP Transaction Manager (FIN-FSCM-TRM-TM) that allows a company to divide its existing shares into multiple shares. This is done to reduce the price of each share, making it more affordable for investors. The total value of the shares remains the same, but the number of shares increases. 
  
  How to use it: 
  In SAP Transaction Manager, stock split can be initiated by entering the number of new shares to be created and the ratio of the split. The system will then calculate the new share price and update the company’s stock records accordingly. 
  
  Tips & Tricks: 
  It is important to consider the impact of a stock split on the company’s financial statements. The total value of the shares remains unchanged, but the number of shares increases, which can affect the company’s earnings per share (EPS) ratio. 
  
  Related Information: 
  Stock splits are often used as a way to increase liquidity in a company’s stock. They can also be used to attract new investors or reward existing shareholders. It is important to understand how stock splits can affect a company’s financial statements before initiating one.