An increase in a corporation's number of outstanding shares without any change in shareholders' equity or the aggregate market value of the shares. For example, XYZ Company declared a 2-for-1 stock split and you owned 100 shares before the split valued at $20 per share, or $2,000. After the split, you would have 200 shares valued at $10 per share, still worth $2,000. Dividends per share also fall proportionately.
The division of shares into a grater number of shares of lower par value... more on: Share split
Where the share price of a company's shares has become large, due to the growth of its value, it is often considered appropriate to issue additional shares for a lower value so that they become a more palatable size. Called a stock split in the USA. there is no 'real' difference in the value of the shares.
When a share becomes too expensive for the average investor, companies may split the shares and issue new shares on say a 4 to 1 basis at no cost. This means that you now own five times the number of shares but the market obviously adjusts the price accordingly. For example, First national Bank had a five times share split in 1994. The shares traded at a high of R85.50 in 1993. Without this split, their shares today would be trading around R183.50 which means that to buy 100 the small investor has to lay out nearly R19,000. Recently the share was R36.50 which means you could buy 100 for R4000.
A division of the par value of existing shares/units into smaller denominations, eg one $1.00 share may be split into two 50cent shares.
if the share price of a company's shares has become large, due to the growth of its value, companies will often issue additional shares for a lower value so that they become a more reasonable size. There is in effect no 'real' difference in the value of the new shares to the old shares.
When a company reduces the paid or face value of its shares, and issues further shares in the same proportion i.e. 100,000 RM2 ordinary shares would be split into 200,000 RM1 ordinary shares.
Exchange of all of a given company's shares for a proportionally larger amount of shares with a proportionally lower nominal value.
An increase in the number of outstanding shares of a stock with a corresponding adjustment in the share price. A share split has no effect on the market value or the value of the owner's shares. For example, if a share selling for $100 per share splits two-for-one, a shareholder with 100 shares worth $10,000 before the split would have 200 shares worth $50 per share after the split, with the same $10,000 value.