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 process is called a reverse stock split, and Hall of Fame Resort & Entertainment Co, the resort’s parent company, is asking shareholders for permission to do so. Cliff Pinckard, cleveland, 30 Aug. 2022 The dividend became eight cents earlier this year when the company did a 1-for-8 reverse stock split. Colin Barr, WSJ, 9 Nov. 2021 When the market closes today, Aug. 24, Tesla will execute a 3-for-1 stock split, which was approved by shareholders earlier this month. Scott Nover, Quartz, 24 Aug. 2022 Amazon's 20-for-1 stock split took effect last Monday. Julia Horowitz, CNN, 13 June 2022 This March Amazon’s board approved the stock split — the first one since 1999 — and shareholders voted for it in May. Peter Cohan, Forbes, 7 June 2022 Details on the stock split—which does nothing but optically lower the price of each share—is key for many, because Tesla is beloved chiefly among retail investors. Christiaan Hetzner, Fortune, 3 May 2022 On June 6, the stock split went into effect and Amazon’s shares rose $2 to $124.79, according to the Journal. Peter Cohan, Forbes, 7 June 2022 If approved by Amazon shareholders, the 20-to-1 stock split will drastically reduce the tech giant’s notoriously expensive share price. Scott Nover, Quartz, 9 Mar. 2022 See More

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.

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

11 Sep 2022

Cite this Entry

“Stock split.” Dictionary, Merriam-Webster, Accessed 27 Sep. 2022.

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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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