Stock Split

[stok split]

What is the definition of Stock Split?

A stock split is a corporate action that increases the number of a company's shares outstanding by issuing more shares to current shareholders proportionally, without any additional capital investment from them. This usually results in a reduction in the par value of each share.

Using Stock Split in an Example

If a company decides to conduct a 2-for-1 stock split, each shareholder will receive an additional share for each share they already own, effectively doubling the number of shares they hold. This action often makes the stock more accessible to a broader range of investors by lowering the market price per share.

Using Stock Split in a sentence

After the stock split, the price per share of the company's stock decreased, making it more affordable for small investors to purchase shares.

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