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

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

The filing also details various financial agreements, including a reverse stock split and the sale of certain subsidiaries. —Quartz Bot, Quartz, 19 Dec. 2024

Palo Alto’s business is doing well — the company reported expectations-beating results for its fiscal 2025 first quarter, raised full year guidance, and announced a 2-for-1 stock split occurring later this month, according to Investopedia. —Peter Cohan, Forbes, 11 Dec. 2024

Will the stock continue to rise ahead of a stock split this Friday? —Peter Cohan, Forbes, 11 Dec. 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.