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Stock Split

A stock split is when there is an increase in the number of outstanding shares without an increase in the shareholder equity.

Additional Comments:

Example of a 2 for 1 split:

BEFORE SPLIT - you have 1 share at a price of $100.00

AFTER the SPLIT - you have 2 shares at a price of $50.00

Related Terms:

Reverse Stock Split
A reverse stock split is defined by the SEC as a transaction that reduces the number ...

Share Split
Increasing a companies shares outstanding by splitting the par value of existing shares and distributing additional ...

The initial raising of capital by putting a company's stocks on offer to the public. The ...

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