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

One new element revealed is a 15 to 1 reverse stock split at the new Starz Entertainment — meaning Starz common shares will be consolidated so that every 15 of them will be rolled into one. —Jill Goldsmith, Deadline, 27 Nov. 2024

Before the stock split, a single Amazon share cost well over $2,000, an astronomical cost for many retail investors. —Tamara Kostova, Forbes, 25 Nov. 2024

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

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.