stock split

noun

: 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

Examples of stock split in a Sentence

Recent Examples on the Web

Significant events during the year included public offerings in May and July 2024, raising approximately $8.4 million in net proceeds, and a reverse stock split at a ratio of 1-for-16. —Quartz Intelligence Newsroom, Quartz, 12 Mar. 2025

Of course, that distribution is now 37.5 cents per share by virtue of a 2-for-1 stock split at the start of 2025, which Meritage needed after a multiyear stock surge. —Brett Owens, Forbes, 14 Jan. 2025

Also on Friday, the company announced a 1-for-20 reverse stock split, effective December 24th. —Wes Davis, The Verge, 22 Dec. 2024

The reverse stock split aims to consolidate shares of Class A and Class B common stock, potentially affecting the stock’s marketability and shareholder equity. —Joe Cornell, Forbes, 13 Mar. 2025

Word History

First Known Use

1950, in the meaning defined above

Rhymes for stock split

• acquit
• admit
• amrit
• armpit
• backlit
• befit
• cockpit
• commit
• dalit
• dendrite
• emit
• illite

Legal Definition

stock split

noun

: 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

Note: The purpose of a stock split is to make the stock more attractive to potential investors by reducing the price per share.