stock splits

Dividing existing shares

A stock split increases the number of a company's shares while proportionally reducing the price per share, leaving total market value unchanged.

In a 2-for-1 split, shareholders receive two shares for each one held, each worth half as much.

Companies split stocks to lower share prices and increase liquidity: Apple announced a 4-for-1 stock split.

A reverse split consolidates shares, raising the price—often to meet exchange listing requirements.

Opposites
value redistribution type

stock splitsdilution

Reduction in concentration

Family

stock, split, stocks, splits, stocked, stocking, stocker, stockist, restock

Familiarity
Top 500,000
Profile
Used worldwide · Timeless · Abstract · Rated G