share split

Also found in: Dictionary, Thesaurus.

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


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

Mentioned in ?
References in periodicals archive ?
Also, the last day of trading in the Endomines' share before the reverse share split is 27 April 2016, while the first day of trading in the Endomines share after the reverse share split is 28 April 2016, which means that the share price from and including 28 April 2016 will reflect the effects of the reverse share split
Accordingly, this reverse share split will result in every five outstanding shares being converted into one share, thus reducing the number of outstanding shares while fractional shares will be paid out in cash.
The fund said that it expects to close the reverse share split after the close of trading on the New York Stock Exchange on 11 September 2015 and thereafter, trading in its common shares on a split adjusted basis, will begin as the market opens on 14 September 2015.
Polymer company HEXPOL AB (STO:HPOLB) announced on Monday that its board of directors has proposed that the Annual General Meeting 2015 resolves on a share split.
M2 EQUITYBITES-February 1, 2018-Viking Supply Ships reports on change in number of shares and votes following share issues and reverse share split
NORDIC BUSINESS REPORT-October 13, 2017-KappAhl's board proposes a share split and automatic share redemption
The share split will apply to shareholders of record as of market close on October 11, 2017 and are payable after market close on October 13, 2017.