– Glossary

Stock split

The creation of a lower share price with additional shares of stock. In a 2-for-1 stock split, 100 shares at a pre-split price of 80 will become 200 shares at a price of 40 after the split. While stock splits don’t change the value of the stock alone, investors tend to like companies that split their stock since they tend to be growth-oriented firms whose share prices have done well historically.

« Back

CLOSE
CLOSE