Definition of stock split
: 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
First Known Use of stock split
Legal Definition of stock split
: 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
Additional Notes on stock split
The purpose of a stock split is to make the stock more attractive to potential investors by reducing the price per share.
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