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SplitIn the US, the issuing of additional shares by a company to its shareholders in proportion to their existing holdings but resulting in a correspondingly lower market price and as such no change in the value of the shareholders' equity. In a one for one split, original ownership of 1,000 shares at $10 per share changes to 2,000 shares at $5 per share.Similar MatchesSplit rate tax systemSplit rate tax systemA tax system that taxes retained earnings at a higher rate than earnings that are distributed as dividends. Split coupon bondSplit coupon bondA bond that begins as a zero-coupon bond paying no interest and converts to an interest paying bond on a future date. Split orderSplit orderA large securities transaction that is divided into smaller orders that are spread out over some period of time to avoid large fluctuations in the market price. Split commissionSplit commissionA commission shared between a broker and a financial adviser or other professional who brought the customer to the broker. Stock splitStock splitOccurs when a firm issues new shares of stock and in turn lowers the current market price of its stock to a level that is proportionate to pre-split prices. For example, if IBM trades at $100 before a two-for-one split, after the split it will trade at $50, and holders of the stock will have twice as many shares as they had before the split. See: Split. Further Suggestionssplit capital investment trustSplit offering Gift splitting Order splitting Split print Split rating Split fee option Split stock |
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