stock split

[stok split]

noun

1. the act of issuing additional shares of stock to existing stockholders by dividing the existing shares into smaller parts, reducing the price per share.

   The company announced a five-for-one stock split, meaning each investor will have five shares of stock for every one they held before.

Word History and Origins

Origin of stock split¹

First recorded in 1945–50

Example Sentences

Historically, stock splits have led to an average gain of 12% for companies between announcement and execution, with Tesla seeing a 28% rise.

Read more on Barron's

Then there is always the potential for a stock split at some point in the future.

Read more on Barron's

Netflix announced a 10-for-1 stock split late Thursday, which it said would help reset shares to a range that would make it easier for employees taking part in an options program to buy in.

Read more on Barron's

“A stock split is also a sign of confidence Palantir could decide to send the market,” Luria said in emailed comments.

Read more on MarketWatch

RBC Capital Markets analysts cited increasing chatter about a potential stock split, calling it Tuesday “the most relevant topic” among retail investors.

Read more on Barron's