Glossary · from the DESK dictionary
Stock Split
Dividing each existing share into several new shares while proportionally reducing the price.
In plain words
One $900 share becomes, say, three $300 shares — the total value of the position stays the same.
In more detail
Splits don't change the company's fundamental value, but they make individual shares nominally cheaper and often more accessible to retail investors. The opposite is a reverse split (consolidation).
Example
In a 3-for-1 split, one $300 share becomes three $100 shares.
What it means for traders
A common corporate event that can influence short-term trading volume and sentiment without changing fundamental value.
Common pitfalls
Purely cosmetic with no fundamental change in value — price reactions are driven mainly by sentiment, not new facts.
Related terms
Adjusted Share Prices · Bonus Share (Scrip Issue) · Bonus Issue · Common Stock · Corporate Action · Bonus Shares · Cash in Lieu of Fractional Shares
From the DESK dictionary. For information only, not investment advice.
This is one page of many.
- The DESK dictionary explains more than 9,400 market terms like this one, in English and German – searchable, sorted by topic and difficulty, with favourites.
- Plus the Macro Terminal with more than 900 indicators per country, company pages and a weekly report.
Also open to read: Glossary A–Z · Free calculators · Weekly report archive
DESK is a research tool and not investment advice. Page generated: 2026-10-12.