Marketable Securities Transfer (1) – Part 2

The stock brokerage company's branch manager said to Gun-Ho, "You have been trading stocks, sir. You should be familiar with stock splitting. Once a stock split occurs, its price fluctuates again. That's why many large and stable companies start with 5,000 won in order to make it easier for them to do a stock split later."

"We have 2 million shares, and if we add the initial public offering shares of 600,000, we will have 2.6 million shares. If we split the share into two for the price of 5,000 won, the total number of stocks will be 5.2 million."

"That's correct, sir. But the publicly available shares to be traded in the stock market will only be 1.56 million. It's going to be a very desirable number of shares to play with."