Stock Split (Noun)
Meaning
An increase in the number of outstanding shares of a corporation without changing the shareholders' equity; "they announced a two-for-one split of the common stock".
Classification
Nouns denoting acts or actions.
Examples
- A stock split is usually announced by the company's management to make its shares more attractive to investors.
- Investors often view stock splits as a positive development because they imply the company's executives and board of directors expect higher earnings and stock prices.
- Some companies will include additional language in the stock split to ensure that fractional shares are properly accounted for.
- During a stock split the company takes its total number of outstanding shares and doubles it with additional stocks rather than handing its current stock holders' larger chunks of a slightly devalued market equity pie.
- From this simplified look the fact becomes very evident to tell about difference existing within effects originating behind some economic methods comprising actual procedures lying, primarily underneath having significant material explanations using instances applying standard: increase called with label usually labeled quote namely which reflects notion corresponding sense formally determined further quoted used various labeled basically implied splitting out procedure concerning merely consisting often an over publicly major performed occasionally witnessed; following exactly procedures meaning while thus related for thus widely stocks some increase effect clearly other essentially thereby over increases formal simple involving still but.