Split stock

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Split stock

(1) Purchases or sales shared with others. (2) Division of the outstanding shares of a corporation into a large number of shares. Ordinarily, splits must be proposed by directors and approved by shareholders.

Split Stock

1. A stock one owns with at least one other person. See also: Joint property.

2. See: Stock split.
References in periodicals archive ?
Brennan and Hughes (1991) argue that firms may occasionally reverse split stocks to signal bad information.
Baker and Gallagher, 1980; Lakonishok and Lev, 1987; Conroy and Harris, 1999) suggests that firms split stocks to move share price toward the optimal level.
In India, SEBI (Securities Exchange Board of India) permitted stock splits in the year 1999 and a lot of companies have split stocks since then.
In India, empirical studies have shown that corporates split stocks to gain the attention of retail investors (i.
Hence, there are no clear guidelines for allowing companies to split stocks in India.
Most firms elect to reverse split stocks in order to regain the minimum price required to maintain a listing on the NYSE and NASDAQ.
Because of higher liquidity, lower transaction costs, marketability, and marginability of firms' stocks, the split stocks are likely to exhibit improved operating performance after reverse split and are expected to generate post-split abnormal returns over a longer horizon.
This means the split stocks are free from any other announcement effects such as cash dividends, bonus issues, right issues etc.
A sizeable body of research indicates reverse split stocks don't perform well post-split, but there are some exceptions.
First, if some firms split their stocks to keep their equity value from falling (perhaps to delay a market correction of their overvalued equity), we expect these firms to have poorer long-run stock performance compared with firms that split stocks for nonmanipulative reasons.
Companies for which high share price is driven by performance will split stocks.