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

Additionally, the date the Company's board of directors approved a reverse stock split has been corrected to April 15, 2024. —Kansas City Star, 8 May 2024

Financial Times Chipotle is asking its shareholders to approve a 50-for-one stock split so that the company can reward its top-performing employees with shares. —Emma Burleigh, Fortune, 7 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.