stock split

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Stock split

Occurs when a firm issues new shares of stock and in turn lowers the current market price of its stock to a level that is proportionate to pre-split prices. For example, if IBM trades at $100 before a two-for-one split, after the split it will trade at $50, and holders of the stock will have twice as many shares as they had before the split. See: Split.

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.

stock split

See split.

Stock split.

When a company wants to make its shares more attractive and affordable to a greater number of investors, it may authorize a stock split to create more shares selling at a lower price.

A 2-for-1 stock split, for example, doubles the number of outstanding shares and halves the price. If you own 100 shares of a stock selling at $50 a share, for a total value of $5,000, and the company's directors authorize a 2-for-1 split, you would own 200 shares priced at $25, with the same total value of $5,000.

Announcements of stock splits, or anticipated stock splits, often generate a great deal of interest. Buyers may simply want to take advantage of the lower share price, or they may believe that the split stock will increase in value, moving back toward its presplit price.

While 2-for-1 splits are the most common, stocks can be also be split 3-for-1, 10-for-1, or any other combination. In addition, a company can reverse the process and consolidate shares to reduce their number by authorizing a reverse stock split.

stock split


stock split


share split

an increase in the number of SHARES in a JOINT-STOCK COMPANY that 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 EXCHANGE values the company at £100,000, making each share worth £10. The company wishes to attract a wider shareholder base by reducing the market PRICE of each share, so it undertakes a two-to-one stock split, giving existing shareholders two new 50p shares for each 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 £5, which it is hoped will improve the marketability of the shares. See also SHARE CAPITAL.

Stock Split

Additional shares of stock distributed to shareholders at no cost. The number of shares received are a ratio of the shares owned. The basis of the original shares is generally apportioned equally to the total shares owned after the split.
References in periodicals archive ?
OppenheimerFunds, a company involved in global asset management, managing more than USD240bn in assets, has announced share splits for five of its funds.
Oppenheimer Ultra-Short Duration Fund - 2:1 share split will be effective as of August 7, 2015; Oppenheimer Rochester Limited Term Municipal Fund and Oppenheimer Rochester Intermediate Term Municipal Fund- 3:1 share split will be effective as of August 21, 2015, and Oppenheimer Limited-Term Government Fund and Oppenheimer Limited-Term Bond Fund- 2:1 share split will be effective as of September 11, 2015.
So this conclusion confirms previous studies on signaling theory says, corporate actions like share splits are signals to less informed people by managers on future positive performance.
So this study concludes by saying share splits may enhance the wealth of shareholders by way of enhanced dividends.
Neither the value of the Funds nor the value of shareholders' investments will change as a result of the share splits.
Oppenheimer Ultra-Short Duration Fund -- 2:1 share split, Aug.
Oppenheimer Limited - Term Government Fund and Oppenheimer Limited-Term Bond Fund -- 2:1 share split, Sept.
As a result of these share splits, shareholders of each Fund will receive an additional four or two shares for each share held of the applicable Fund as indicated in the table above.
All forward share splits will apply to shareholders of record as of the close of the NYSE Arca on May 18, 2015 (the "Record Date"), payable after the close of the NYSE Arca on May 19, 2015 (the "Payable Date").
today announced plans to implement a two-for-one share split of its issued and outstanding common shares.
HONG KONG, April 5 /Xinhua-PRNewswire-FirstCall/ -- Xinhua Finance (TSE Mothers: 9399), China's premier financial services and media company, today announced that its Board of Directors has given approval for a share split to take place over the next year within the range from two shares for every one existing share up to five shares for every one existing share.
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.