The study is to test on stock split that means the division of shares into a large number of shares with lower unit value. There is no change in the proportional holding of shares. A stock split has no immediate effect on a stockholder's equity. The prime objective of this paper is to analyze the information impact of the stock split on the BSE 500 of Bombay Stock Exchange. Data collection is based on secondary type, form website www. bseindia. com. The study is based on the stock split which is listed in the NSE and BSE of those companies which are included in the NSE 50 and the BSE 30 companies who splits their shares during the 1st January, 2001 to 30th January, 2015. Analysis of the stock split effect on the price and volume, have to be scrutinized Cumulative Abnormal Return (CAR), Average Abnormal Return (AAR), Mean Cumulative Abnormal Return (MCAR), Mean Average Abnormal Return (MAAR). The last test on whether the investor can make an above normal return by relying on public information impound in stock split. There is no significant trading volume difference on day before stock split but there is huge volume on the split date and after that.
