Home > Terms > English, UK (UE) > Split or stock split
Split or stock split
An increase in the number of outstanding shares of a company's stock, such that the proportionate equity of each shareholder remains the same. The market price per share theoretically should drop proportionately. Usually done to make a stock with a very high per-share price more accessible to small investors. Requires approval from the board of directors and sometimes shareholders.
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- Part of Speech: noun
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- Industry/Domain: Financial services
- Category: Private equity
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