For Stock Split we have terms and definitions in 5 topics. The topics are Accounting, Accounting Terms, Finance, Frauds and Scams and Securities.

Stock Split (Accounting)

Increase in the number of shares of a company's COMMON STOCK outstanding that result from the issuance of additional shares proportionally to existing stockholders without additional capital investment. The PAR VALUE of each share is reduced proportionally.

Stock Split (Accounting Terms)

Increase in the number of shares of a company's COMMON STOCK outstanding that result from the issuance of additional shares proportionally to existing stockholders without additional capital investment. The PAR VALUE of each share is reduced proportionally.

Stock Split (Finance)

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 trade at $50, and holders of the stock will have twice as many shares as they had before the split. See: Split.

Stock Split (Frauds and Scams)

Partitioning the outstanding shares of a corporation into a larger number of shares, without affecting shareholders' equity or the total market value at the time of the split. For instance, if a stock valued at $100 splits 2-for-1, an investor who owns 100 shares would now own 200 shares valued at $50. Splits usually must be voted on by directors and approved by shareholders.

Stock Split (Securities)

Issuing additional new shares for those now outstanding. For example, a 2 for 1 stock split doubles the number of shares outstanding. The price is likely to fall to one-half the previous price.

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