Split


 

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Split

In 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 Matches

Split rate tax system

Split rate tax system

A tax system that taxes retained earnings at a higher rate than earnings that are distributed as dividends.


Split coupon bond

Split coupon bond

A bond that begins as a zero-coupon bond paying no interest and converts to an interest paying bond on a future date.


Split order

Split order

A 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 commission

Split commission

A commission shared between a broker and a financial adviser or other professional who brought the customer to the broker.


Stock split

Stock split

Occurs 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.


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