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 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

Since going public in 2020 through a merger with a blank-check company, Nikola's stock had fallen below the $1 mark on several occasions, prompting the company to execute a reverse stock split last year to comply with Nasdaq's listing rules. —Jonathan Limehouse, USA TODAY, 19 Feb. 2025

The filing also details a reverse stock split of 1-for-20 effective October 24, 2024, and a public offering completed in November 2024, raising gross proceeds of approximately $10.0 million. —Quartz Intelligence Newsroom, Quartz, 13 Feb. 2025

Nvidia’s stock underwent a 10-to-one stock split in July. —Paolo Confino, Fortune, 21 Oct. 2024

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.