stock split

stock split
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 stock more attractive to potential investors by reducing the price per share.

Merriam-Webster’s Dictionary of Law. . 1996.

stock split
n.
The splitting of single shares into two or more shares apiece, resulting in an increased total number of shares and in the shares held by individual shareholders. See also broker, preferred stock, common stock, Securities and Exchange Commission, security

The Essential Law Dictionary. — Sphinx Publishing, An imprint of Sourcebooks, Inc. . 2008.


stock split
Also known as a share split. The division of a company's existing shares into more shares. The proportionate equity of each shareholder remains the same. In a 2-for-1 split, each shareholder would receive an additional share for each share formerly held.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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Look at other dictionaries:

  • 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 — 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… …   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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