stock split

noun

Definition of stock split

  1. :  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

1950

First Known Use of stock split

1950


Law Dictionary

stock split

noun

Legal Definition of stock split

  1. :  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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