share 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.

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

see STOCK SPLIT.

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References in periodicals archive ?

Sistema's share split will be effected on the record date of November 13, 2007.

Sistema Registers Share Split

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

Endomines's board sets date for 1:100 reverse share split; Recalculates terms of the warrants 2014/2016

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.

First Trust ISE-Revere Natural Gas Index Fund declares approval of 1 for 5 reverse share split

Upon effectiveness of the share split, the ratio between the ordinary and preference ADS and the underlying ordinary and preference shares is now 1:1, meaning that one Fresenius Medical Care ordinary or preference ADSs is the equivalent of one Fresenius Medical Care ordinary or preference share.

Fresenius Medical Care Share Split to Become Effective on June 18, 2007

After the share split, every holder of an ordinary share will hold three ordinary shares and every holder of a preference share will hold three preference shares.

Fresenius Medical Care Proposes Share Split of 1:3

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.

Cushing MLP Total Return Fund's board approves reverse share split and distribution of USD0.018 per share for September

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.

HEXPOL's board proposes 10:1 share split

The proposed record date at VPC for the share split that is included in the redemption programme will be around 22 May 2007.

Scania: Scania's Board of Directors Proposes That SEK 50 Per Share Be Distributed to the Shareholders

80) per registered share and, in addition, a share split of 1:2.

Julius Baer Boosts Net Profit by 35% to CHF 868 Million (USD $699 Million)*

M2 EQUITYBITES-February 1, 2018-Viking Supply Ships reports on change in number of shares and votes following share issues and reverse share split

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

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.