DailyStocks.com

Sign up   Log In
Lost Password?
MyDailyStocks
Set Home Page
What's New
Site Map
Help
FAQ
  
GLOSSARY STOCK ANALYSIS INSIDER BUYS PRODUCT REVIEWS EDUCATION SEARCH
Symbol:
Bookmark and Share

MARKET WATCH
DayTrading Portal
Free Stock Charts
Free Technical Analysis
REVIEWS
Online Brokers Review 2014
Investors Daily
Top 20 Baby Boomer WebSites
SEARCH ENGINES
Online Courses
Financial Advisers
SEC filings
Finance Jobs
Brand Reviews Only
Start-up Content Only
GLOSSARY: Enter search term:
Browse dictionary by letter: A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Glossary Term: STOCK SPLIT

Definition(s) for STOCK SPLIT:


1. ) Also known as split, stock split simply involves a company altering the number of its shares outstanding and proportionally adjusting the share price to compensate. However, this does not affect the intrinsic value or past performance of an individual's investment who owns the shares.

2. ) When a company increases the number of shares outstanding by splitting existing shares. A 2-for-1 split means every stockholder gets two new shares for each one they own, and a 3-for-2 split means they get three shares for every two they own. The price of an individual share falls, but stockholders do not lose money because they are being given the equivalent number of new shares.

3. ) An increase in the number of outstanding shares by a corporation, through the issuance of a set number of shares to a shareholder for a set number of shares that the shareholder already owns. For example, a corporation might declare a '2-for-1 stock split.' This means that for every share of stock an investor owns, he/she will be given another, thus owning 2 shares instead of 1. There will be a corresponding reduction in equity value per share. In this case, the new shares (post-split) will be worth one-half their previous value but the investor will own twice as many shares. See also Stock dividend



Content Library
News
Insider Buys and Activist Buys
RESEARCH
Stock Search Engine
Guide to Financial Sites
FAQ
Investors Research Portal
Glossary
Company Overviews
Forums
Work with DailyStocks
License our Glossary
Write for us
About us
Feedback
Partners & Sponsors
InvestingChannel
COPYRIGHT© 1997-2012 DailyStocks. All Rights Reserved. Privacy Policy.
Link to this page http://www.dailystocks.com/glossary_words/STOCK%20SPLIT.htm, notify us and we will consider your web site to our directory