Definitions for "stock split"
An increase in the number of outstanding shares of a companys stock, such that...
When a stock splits, a corporation increases its shares outstanding. As a result, the share price usually decreases, because the total value of the shares owned will remain the same. For example, if an investor owned 100 shares of a company that authorized a 2 for 1 split, he or she would then own 200 shares, 2 shares for every 1. Companies often use a stock split because their stock price is too high to attract interest or because they want to increase the number of shares outstanding.
When the board of directors of a company decides to increase the number of shares that they have outstanding, pending shareholder approval. What happens is the number of shares increases and the price of an individual share decreases. For example, if a company announces a 4 for 1 stock split and you have 200 shares of stock at $100 a share, you end up with 800 shares of stock at $25 a share. The value stays the same for the shareholder.
Keywords:  bonus, issue, name
US name for a bonus issue.
A change in the capitalization of a company that i... Add a comment
an effective way to immediately reduce the market value of stock
a powerful progression in value
Keywords:  decision, accounting
an accounting decision to
Keywords:  dividend, free, way, tax, provide
a way to provide a tax-free dividend