Bajaj Finance Share Crash! Why Trading Crypto Is Better

When Bajaj Finance shares opened on June 16, investors were taken aback. The stock appeared to plummet nearly 90%, falling from Rs 9,331 to just Rs 956 on the National Stock Exchange. 

Headlines quickly picked up the story, fueling confusion and panic. But the truth is far less dramatic, and far more technical. There was no real crash. What happened instead was a planned adjustment to reflect two corporate actions, a stock split and a bonus issue. 

While the news has calmed since then, this incident serves as a reminder of how stock market mechanics can sometimes create misleading signals. It also raises an important question, can crypto trading offer more clarity and flexibility for modern investors? Read more!

What Really Happened to Bajaj Finance Share?

The sharp decline in the Bajaj Finance share price wasn’t due to a loss in value or company fundamentals. Instead, it was a result of a technical adjustment following two corporate actions:

1. Stock Split (1:2) – Each existing share with a face value of Rs 2 was split into two shares with a face value of Re 1. This doubled the number of shares held by each investor while halving the price per share.

2. Bonus Issue (4:1) – Shareholders received four additional shares for every one they held. After the stock split, investors essentially received eight more shares on top of the two split shares for every original share they owned.

So, if you previously held one Bajaj Finance share, you now own ten shares, each priced around Rs 956. Importantly, the total value of the investment remains the same. The apparent 90% fall is a mathematical adjustment, not a financial loss.

Read also: How to Get Rich with Crypto: A Beginner's Guide

The Current Status and What Lies Ahead

Although the Bajaj Finance share price reflects the adjusted value, many investors are still waiting for the additional shares to appear in their demat accounts. Bajaj Finance has clarified that this process will be completed by June 27.

Despite recent macroeconomic challenges, there is optimism about the company’s future. With interest rates now softening and inflation easing, borrowing costs may drop, reviving demand for personal loans and consumer credit, areas where Bajaj Finance thrives. 

According to analysts, this positions the company well for renewed growth, especially among middle-income earners.

Still, incidents like this can be unsettling, particularly for casual investors. Traditional equity investments may offer long-term stability, but they are not always simple to interpret. 

That’s where cryptocurrencies are beginning to attract attention, as a different, and sometimes more straightforward, investment alternative.

Stocks vs. Cryptocurrencies: Which is Better for Modern Investors?

Traditional stocks like Bajaj Finance share represent real ownership in a company, backed by tangible assets and cash flows. They offer historical consistency and investor protections. 

But events like stock splits and bonus issues can sometimes confuse investors, particularly those new to the stock market.

Cryptocurrencies, by contrast, operate on different principles. Most are decentralized, meaning they are not governed by central banks or corporate actions. Instead, crypto prices are influenced by sentiment, speculation, and adoption. Let’s explore the key differences.

Understanding Stocks: Pros and Cons

Pros:

• Represent ownership in real businesses

• Backed by assets and cash flow

• Regulated by government agencies

• Long-term historical returns of around 10% per year

Cons:

• Subject to market corrections and company decisions

• Can be confusing due to corporate actions

• Require time and knowledge to understand financials

• Generally slower to deliver high gains

What Makes Cryptocurrency Different?

Cryptocurrencies like Bitcoin and Ethereum are digital assets that are not linked to a company or government. Instead, they are based on blockchain technology, which allows for secure, decentralized transactions.

Pros:

• High potential for price growth

• Not subject to company-level changes or stock splits

• Accessible 24/7 with fewer barriers to entry

• Often seen as a hedge against inflation and fiat currency

Cons:

• Extremely volatile

• No intrinsic value in most cases

• Vulnerable to cybersecurity risks

• Regulatory uncertainty still lingers in many regions

Read also: Secret Website to Make Money, Just for You

So, Is Trading Crypto Really Better?

It depends on what kind of investor you are. If you prefer long-term stability, dividends, and ownership in real businesses, stocks like Bajaj Finance share may remain a strong choice.

But if you are comfortable with higher risks, crave more flexibility, or are looking for a hedge against traditional financial systems, cryptocurrency offers unique advantages. 

With 24/7 trading, no middlemen, and fewer technical hurdles like bonus issues or splits, crypto investing might be a simpler entry point for many modern investors.

Still, it’s not a matter of “either-or.” A balanced approach may involve holding both stocks and crypto, using each for its strengths. What’s most important is understanding what you’re investing in and being clear on the risks and potential rewards.

Find other interesting articles on Bitrue blog! You can also directly buy selected assets on Bitrue by registering here! 

FAQs

1. Why did Bajaj Finance share drop 90% in a day?

The drop was due to a technical adjustment after a stock split and a bonus issue, not a real crash in value.

2. Will investors lose money because of the Bajaj Finance share adjustment?

No. The number of shares increased while the price per share adjusted. The total investment value remains the same.

3. When will the adjusted shares appear in my demat account?

Bajaj Finance has announced that the updated shares will be reflected by June 27.

4. Is cryptocurrency safer than stocks?

Crypto is generally riskier due to high volatility and fewer regulations, but it also offers greater flexibility and potential gains.

5. Should I invest in stocks or cryptocurrency?

It depends on your risk tolerance and financial goals. Many investors choose to diversify across both asset types.