Stock split

Stock split
Occurs when a firm issues new shares of stock but 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 2-for-1 split, after the split it will trade at $50 and holders of the stock will have twice as many shares than they had before the split. See: split. The New York Times Financial Glossary

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   The break-up of a share into smaller units without affecting either the total share capital or reserves. The main effect is to reduce the unit price of each quoted share, making them easier to trade in small lots and more attractive to small investors. Opposite of a reverse stock split.
   ► See also Reverse Stock Split.

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stock split UK US noun [C] (also share split) STOCK MARKET, FINANCE
an occasion when a company’s shares are divided into smaller units to make them easier to sell at a lower price, while the total value of the company's shares remains the same: »

When their share price approaches triple digits, they usually do a stock split.

»

A software publisher gained after declaring a 2-for-1 stock split.

Compare SPLIT STOCK(Cf. ↑split stock)
See also REVERSE STOCK SPLIT(Cf. ↑reverse stock split)

Financial and business terms. 2012.

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Look at other dictionaries:

  • stock split — n: the division of the outstanding shares of a corporation into a larger number of shares thereby reducing the value of each share but not the total value of each holding compare reverse stock split ◇ The purpose of a stock split is to make the… …   Law dictionary

  • stock split — n. the act or result of splitting stock: see SPLIT (vt. 7) * * * …   Universalium

  • stock split — n. the act or result of splitting stock: see SPLIT (vt. 7) …   English World dictionary

  • Stock split — A stock split or stock divide increases the number of shares in a public company. The price is adjusted such that the before and after market capitalization of the company remains the same and dilution does not occur. Options and warrants are… …   Wikipedia

  • 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… …   Financial and business terms

  • stock split — noun an increase in the number of outstanding shares of a corporation without changing the shareholders equity they announced a two for one split of the common stock • Syn: ↑split, ↑split up • Hypernyms: ↑increase, ↑step up * * * stock split …   Useful english dictionary

  • Stock Split — A corporate action in which a company s existing shares are divided into multiple shares. Although the number of shares outstanding increases by a specific multiple, the total dollar value of the shares remains the same compared to pre split… …   Investment dictionary

  • stock split — noun Date: 1950 a division of corporate stock by the issuing to existing shareholders of a specified number of new shares with a corresponding lowering of par value for each outstanding share compare stock dividend …   New Collegiate Dictionary

  • stock split — See subdivision See also change in nominal value Increase in a corporation s number of outstanding equities without any change in the shareholder s equity or the aggregate market value at the time of the split. Equity price and nominal value are… …   Euroclear glossary

  • stock split — /ˈstɒk splɪt/ (say stok split) noun an issue of free ordinary shares in some proportion to existing shares …  

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