Alright… relax first.
Because this is where many people get confused and miss opportunity.
You see: ₦10,000 per share
₦1,000 per share

And the first thing that comes to your mind is:
“This one of ₦10,000 must be bigger.”
No.
That is where the mistake starts.

FIRST – LET ME CORRECT ONE THING
Share price is NOT value.
Let me say it again…
Price is what you see
Value is what actually exists

Let me explain this better with a Simple Story…
Imagine:
Mama Ngozi has a tomato business worth ₦1,000,000
Now she wants people to invest in her business.
She has two options:
OPTION 1
She divides the business into:
100 parts
Each part = ₦10,000

OPTION 2
She divides the business into:
1,000 parts
Each part = ₦1,000

Now answer me…
Is one business bigger than the other?
No.
Same business
Same value
Different structure

THIS IS THE SECRET
Share Price = Total Company Value ÷ Number of Shares
That’s all.
Nothing more. Nothing less.

NOW LET ME ANSWER YOUR QUESTION…
You asked:
“If one company adjusts price… will the other adjust?”
No.
Because each company controls its own structure.
And they don’t randomly “add ₦100” like you think.
There is a proper system.
And This Is Where “SHARE SPLIT” comes in

Oya… calm down.
Let me break it down simply.
In Financial Accounting…. There’s What we called “FORWARD SHARE SPLIT” and “REVERSE SHARE SPLIT”

Chieeee…..
Iking ooooooh?
Wetin Bring Accounting Again for this Small Question Na?

Oya… Relax…
Let me Explain this in a way that even Grandma in the Village will nod her head and say: “Yes my Pikin, I understand this one”

1. FORWARD SHARE SPLIT
(Simply means Making the price of a STOCK cheaper)

This is when a company says:
“Let’s make our shares more affordable”

For Example:
₦1,000 per share = becomes ₦500
What happens?
Numbers of Outstanding Shares DOUBLE
And the Price reduces
But the…..
Value remains the same

While….

2. REVERSE SHARE SPLIT
(Simply means Making the Share price higher)
This is when a company says:
“Let’s increase the price per share”

For Example:
₦1,000 per share before = becomes ₦2,000 now.
What happens?
The Numbers of outstanding Shares reduce
While the Price per Share increases
But… The…
Value remains the same

Now….
Listen carefully…
Share split does NOT make you richer.
YES…
If you had ₦100,000 before…
You still have ₦100,000 after.
Just arranged differently.

But….IKING OOH!
WHY DO COMPANIES DO THIS?

Now this is the part most people don’t understand…
Let me tell you the hidden game in finance

First….
IS TO ATTRACT MORE INVESTORS
Because….
Many people think:
₦50 = cheap
₦5,000 = expensive
Even when they don’t understand the company.
So companies reduce price to attract more buyers.

Second….
IS TO INCREASE LIQUIDITY
Because….
More shares = more people can trade
And when trading increases…
Market becomes active
And Price movement improves

Third…..
IS TO CONTROL PERCEPTION
Yes… This one self Na hidden Secret oooh.
Because…
Some companies want to look:
Affordable to (retail investors)
And Premium to (big investors)
So they adjust structure accordingly.

As your Financial Literacy Advocate….
Let me tell you The Biggest Mistake People Make…
You go to NGX…
You see:
₦10,000 share = “Too expensive”
₦50 share = “Cheap, let me buy”

That is how people lose money.
Because…
Cheap price does not mean cheap value.
So…
Before you ask:
“How much is this share?”
Ask:
“What is this company worth?”

Because…
Smart investors buy VALUE.
While….
Average investors chase PRICE.

If you truly understand what I just explained…
You will never look at stocks the same way again.
Because…..
Most people miss opportunity not because they don’t have money…
But because they don’t understand what they are looking at.

My name is Iking Ferry, a Financial Literacy Advocate and Investment Strategist On a mission to build 10 million financially free Nigerians and Africans Through the right knowledge.