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

The company effectuated a 1-for-10 reverse stock split on November 6, 2023, and its common stock is now quoted on the OTC Markets Pink Current Information tier under the symbol 'NVOS'. —Quartz Bot, Quartz, 18 Dec. 2024

The stock split over and over again for the next three years. —Charlie Fink, Forbes, 12 Dec. 2024

The company also disclosed a 5-for-1 stock split, a move that Lawton said makes its shares affordable for employees to purchase via a discount through the company’s stock purchase program, as well as broaden access to outside investors. —Vicki M. Young, Sourcing Journal, 9 Dec. 2024

Reverse stock split reduce the number of outstanding shares and raise the share price in the process. —Jill Goldsmith, Deadline, 27 Nov. 2024

Word History

First Known Use

1950, in the meaning defined above

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.