Split

Definition

A split occurs when there is an increase in the number of outstanding shares of a company's stock, with the equity of each shareholder remaining the same in relation to total shareholder's equity.

For example, if a single stock split occurs, a stockholder with 4 shares before the split would hold 8 shares after the split, with his/her proportionate equity remaining constant.

Related Terms

Shareholders' Equity, Shares Outstanding, Stock, Stock Buybacks