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Stock split


The division of the outstanding shares of a corporation into a larger number of shares. For example, a 3-for-1 split by a company with 1 million shares outstanding selling at $75 per share would result in 3 million shares outstanding selling at $25 per share. Each holder of 100 shares after the 3-for-1 split would be entitled to 300 shares. His proportionate equity in the company would remain the same.
Steven Huddart
Smeal College of Business, Penn State University, University Park, PA 16802-3603 USA
(814) 863-0448
huddart@psu.edu
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was last updated on Mon, Sep 6, 2021.
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