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 ?
Following the share split, the company's board of directors plans to change its quarterly dividend from CAD0.125 to CAD0.0625 per share for each of the Class A shares and Class B shares held.
The effects of the share split will be reflected in the company's share price from 18 June 2019.
The Company will use the direct registration system ("DRS") to electronically register the Common Shares issued pursuant to the Share Split, rather than issuing physical share certificates.
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.
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.'
He said it would propose a share split - increasing the number of shares by reducing their value.
Topps added it planned to announce proposals for a share split, increasing the number of shares by reducing their value.
Following the company's 2 for 1 share split he held 52 million shares.
Prompted by its high share price, at the end of January HI effected a 10-for-1 share split. Its shares fell from trading in the e90s to trading in single figures, making it a more negotiable share.
Rumours of a sensational sell-off spread after Tottenham Hotspur Plc launched a five-for-one share split.
M2 EQUITYBITES-June 12, 2019-Troax Group decides on record date for 3:1 share split