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stock split
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stock split


The share price is down since I bought, but the stock split, so my investment is actually worth more money.
  an increase in the number of outstanding shares of a corporation without changing the percentage of the company owned by each shareholder
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stock splits stock split
Notes:
For example, a 2-for-1 stock split doubles the number of shares owned by each shareholder; and the market should compensate by reducing the value of each share by 50%.

Without stock splits, some stocks would grow so expensive they would be less easily traded. For example, Warren Buffet does not want Berkshire Hathaway to be easily traded, so he has never split the stock which now costs over $100,000 per share.
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  • The share price is down since I bought, but the stock split, so my investment is actually worth more money.
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Associated words [difficulty]:   stock split , dividend [6]
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Most commonly used in these subjects:   Personal Finance, Business, Law
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