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 filing highlights the company's efforts to regain compliance with Nasdaq listing requirements, including potential actions like a reverse stock split. —Quartz Bot, Quartz, 14 Nov. 2024

The company’s 10-for-one stock split in June also helped pave the way for its addition to the index, making its soaring shares more accessible to retail traders. —Reuters, CNN, 1 Nov. 2024

The company also implemented a 10-for-1 forward stock split that took effect Sept. 30, increasing its authorized shares from 100 million to 1 billion. —Amanda Gerut, Fortune, 31 Oct. 2024

The company, whose first-quarter revenue forecast exceeded Wall Street's estimates, also announced a 10-for-1 stock split. —Abid Ali, CNBC, 7 Aug. 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.