share split


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Stock Split

The act of a publicly-traded company increasing the number of outstanding shares while maintaining the same market capitalization. In other words, a company engages in a stock split in order to decrease its share price by increasing the number of shares available. Current holders of the stock are given more shares so that they maintain the same percentage of ownership in the company. For example, a company with a share price of $400 may double the number of shares so that the share price drops to $200. Companies conduct stock splits for a number of reasons; one possible reason is to keep its shares affordable for investors. See also: Last Split, Split Ratio, Split Adjusted.

share split

or

stock split

an increase in the number of SHARES in a JOINT-STOCK COMPANY matched by an offsetting reduction in the PAR VALUE of each share so that it does not affect the capitalization of the company For example, Company X has 10,000 authorized, issued and fully paid up shares each with a par value of £1; and total SHAREHOLDERS' CAPITAL is shown in the BALANCE SHEET at £10,000. The STOCK MARKET values the company at around £100,000, making each share worth £10. The company wishes to attract a wider shareholder base by reducing the market PRICE of each share, and so undertakes a two-for-one stock split, giving existing shareholders two new 50p shares for each £1 share held. The company now has 20,000 authorized, issued and fully paid-up shares of 50p nominal value, and capitalization of the company remains unchanged at £10,000. However, now the stock-market price of the shares will be around £5, which hopefully will improve the marketability of the shares. See also SHARE CAPITAL.

share split

see STOCK SPLIT.
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References in periodicals archive ?
Global Banking News-June 24, 2015--OppenheimerFunds announces share splits for five funds
Therefore the share split was carried out in two steps: In a first step, ams share capital was increased to EUR 72,947,355 through conversion of retained earnings and reserves, and in a second step, 72 947 355 no par value bearer shares were created by means of a 5-for-1 split.
split: the share split will increase the number PhosAgro shares
1 Empirical studies: Empirical studies on share split analyzed on the validity of above hypothesis and majority of them proved positively.
Any and all other matters necessary for the share split shall be resolved at meetings of the Board of Directors hereafter.
BSS said the share split would enable it to increase market liquidity following the rise in its share price in recent months.
We expect to mail the additional share certificates resulting from the share split on May 17, 2005 (Mailing Date) to shareholders of record as of the close of business on May 12, 2005 (Record Date).
Mr Ounstead said, 'We believe that a share split will increase liquidity by making our shares more affordable and accommodate investors who are deterred by the current price level.
4m shares at the end of March 2001, now 17m after the share split.
The reverse share split was approved by the Company's board of directors and by its shareholders on July 2, 2012 and August 16, 2012, respectively.
The Fund anticipates completing a 1-for-5 reverse share split after the close of trading on the New York Stock Exchange on September 11, 2015.
National Bank of Canada (the Bank ) (NA) announces today that its Board of Directors has approved a 2-for-1 share split of its outstanding common shares.