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.
- sharesUnits of company ownership
- two for oneSingle price, double goods
- par valueSecurity's nominal worth
- ratioComparative numerical relation
- divisionSplitting into parts
board approval · doubling · market cap · investment · securities · market · valuation · capital markets · Wall Street · adjustment · options · retail investors · restructuring · corporate governance · corporate earnings · trading volume · equity markets · cash dividends
- investingbonds, investing, investor, investments, shares
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- stocksshares, equity, share, shareholder, ownership
- equityshareholder equity, equity stakes, retained earnings, equity stake, equity investment
- trading rulestrading halt, circuit breakers, trading hours, market orders, all or nothing
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