Stock Split

Stock Split is a corporate action when a company divides it’s existing shares in to multiple shares. Although how many shares outstanding increases by a specific multiple, the complete dollar value from the shares remains a similar compared to pre-split quantities, because the split would not add any genuine value. The most usual split ratios are 2-for-1 or 3-for-1, meaning the stockholder will have a couple of shares for each and every share held earlier. Stock Split also known being a “forward stock split.”