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

Nvidia’s coming stock split Nvidia’s 10-for-1 stock split is expected to boost demand for the shares further. —Britney Nguyen, Quartz, 7 June 2024

What could potentially go wrong with Nvidia’s stock split? —Eva Roytburg, Fortune, 7 June 2024

As a result of the reverse stock split, the number of shares of common stock outstanding will be reduced from approximately 33.3 million shares to approximately 0.33 million shares, and the number of authorized shares of common stock will remain at 250 million shares. —Charlotte Observer, 5 June 2024

Nvidia shares could surge another 26% if the outlook proves prescient, and the stock split might help with that bullish move, according to Bank of America’s reading of history. —Will Daniel, Fortune, 24 May 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.