• Sometimes, companies split their outstanding shares into a larger number of shares. If a company with 1 million shares did a two-for-one split, the company would have 2 million shares. An investor with 100 shares before the split would hold 200 shares after the split. The investor's percentage of equity in the company remains the same, and the price of the stock he owns is one-half the price of the stock on the day prior to the split.

 Embedded terms in definition
Outstanding shares
 Referenced Terms
 Dual syndicate equity offering: An international equity placement where the offering is Split into two tranches - domestic and foreign - and each tranche is handled by a separate lead manager.

 Last split: After a stock Split, the number of shares distributed for each share held and the date of the distribution.

 Material news: News released by a NASDAQ company that might reasonably be expected to affect the value of a company's securities or influence investors' decisions. Material news includes information regarding corporate events of an unusual and non recurring nature, news of tender offers, unusually good or bad earnings reports, and a stock Split or stock dividend. See also: Trading Halt.

 Mid point: A method of calculating sales and EPS growth on a graph. It bases growth on averaged values. For 10 years of data, averages are calculated for the first and last 5 years. Each average determines a point between which an imaginary line is drawn to calculate the growth of the slope. For an odd number of years, the data is Split so that the middle year is accounted in both averaged sums.

 Reverse split: A reduction in the number of a corporation's shares outstanding that increases the par value of its stock or its earnings per share. The market value of the total number of shares remains the same. See also: Stock Split.Occurs when a corporation reduces the number of shares outstanding by reorganizing its capitalization structure. Here, fewer shares may be an effort to have a higher unit share price. One motivation for this is that some exchanges have listing/delisting criteria of which share price is a factor. The proportional ownership of the shareholders does not change but the shares held do change.

 Related Terms
 Last split
Reverse split
Reverse stock split
Split fee option
Split rate tax system
Stock split

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