stock split


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

Examples of stock split in a Sentence

Recent Examples on the Web The world’s largest technology company also announced a four-for-one stock split after its shares surged more than 80% in the past year. Mark Gurman,, "Apple Smashes Revenue, iPhone Estimates in Record Third Quarter," 30 July 2020 Hoping to revive its shares and remain on the Nasdaq market, the Maryland company did a 1-for-20 reverse stock split but still finished 2019 down another 39%. Gregory Zuckerman, WSJ, "Vaccine Stock Soars, Rewarding Investor’s Big Bet," 9 July 2020 The company avoided delisting from the New York Stock Exchange earlier this year by resuscitating its ailing share price through a 1-for-200 reverse stock split. Bloomberg Wire, Dallas News, "Drilling pioneer Chesapeake Energy prepares for bankruptcy as options diminish," 9 June 2020 These days, companies aren’t showing much interest in stock splits—which used to happen fairly regularly, and made individual shares more affordable. Chris Taylor, Fortune, "Can’t afford to buy Amazon or Berkshire Hathaway stock? Now you can buy a fractional share," 22 Feb. 2020 The risky plan to raise as much as $500 million, coupled with an impending reverse-stock split aimed at avoiding delisting, spooked investors. Bloomberg Wire, Dallas News, "Chesapeake Energy’s survival strategy: Sell off up to $500 million in assets," 26 Feb. 2020 The company's stock was trading at just 55 cents last June and was in danger of being delisted from the New York Stock Exchange before a 1-15 reverse stock split boosted the stock price to $8.25. Paul R. La Monica, CNN, "Blue Apron revolutionized meal kits but investors think it's toast," 18 Feb. 2020 Apple shares traded well above $300 when the company completed a 7-for-1 stock split in 2014. Fortune, "Apple Shares Top $300 Amid Optimism About Holiday Sales," 2 Jan. 2020 When a company executes a regular stock split, shareholders end up with more shares that are worth proportionately less. Dallas News, "Motley Fool: Investing in Amazon, budgeting steps and this week's trivia," 18 Aug. 2019

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'stock split.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of stock split

1950, in the meaning defined above

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The first known use of stock split was in 1950

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Last Updated

5 Aug 2020

Cite this Entry

“Stock split.” Dictionary, Merriam-Webster, Accessed 8 Aug. 2020.

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More Definitions for stock split

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

Note: 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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