yandex watch
forex ask logo
forex ask banner
Welcome, Guest

Forgot Password

Not yet a Member? Register Here

Loader
Question Details
Username: PrettyWoman

Rating:
Guru Stars

Asked to: Heng Kim

Date Created: 03 Sep 2018
Category 28
Tag Financial
Question What is a 'Stock Split'?
Advice from Guru
Hello PrettyWoman,

A stock split is a corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares. Although the number of shares outstanding increases by a specific multiple, the total dollar value of the shares remains the same compared to pre-split amounts, because the split does not add any real value. The most common split ratios are 2-for-1 or 3-for-1, which means that the stockholder will have two or three shares, respectively, for every share held earlier.

A stock split is also known as a forward stock split. In the UK, a stock split is referred to as a scrip issue, bonus issue, capitalization issue, or free issue.

List of Gurus

  • Guru Most read Jun Wang
    Jun Wang

    Hello PrettyWoman, A cambist is any individual considered to be an expert in

    Read more
  • Guru Most read Heng Kim
    Heng Kim

    Hello Fluffy, Keep and pay refers to type of bankruptcy exemption. It lets a

    Read more
  • Guru Most read Talitha Taslim
    Talitha Taslim

    Hello Maria, A decentralized market, without a central physical location,

    Read more
  • Guru Most read Apinya Kamon
    Apinya Kamon

    Hello LuckyMan, The Great Recession is a term that represents the sharp

    Read more
  • Guru Most read Anton Luyten
    Anton Luyten

    Hello Andrew, A maintenance margin is the minimum amount of equity that must

    Read more
  • Guru forex ask most-read Goro Yang
    Goro Yang

    Hello Andrew, Quid pro quo, Latin for "something for something," is

    Read more
  • Guru forex ask most-read Apinya Kamon
    Apinya Kamon

    Hi Andrew, A company which is the subject of a merger or acquisition attempt.

    Read more
  • Guru forex ask most-read Anton Luyten
    Anton Luyten

    Hello Peter, Turkey is slang for an investment that yields disappointing

    Read more
  • Guru forex ask most-read Talitha Taslim
    Talitha Taslim

    Hello LuckyMan, The current ratio is a liquidity ratio that measures a

    Read more
  • Guru forex ask most-read Heng Kim
    Heng Kim

    Hi LuckyWoman, Capital growth is the increase in value of an asset or

    Read more
  • Guru forex ask newest Jun Wang
    Jun Wang

    Hello PrettyWoman, A cambist is any individual considered to be an expert in

    Read more
  • Guru forex ask newest Heng Kim
    Heng Kim

    Hello Fluffy, Keep and pay refers to type of bankruptcy exemption. It lets a

    Read more
  • Guru forex ask newest Talitha Taslim
    Talitha Taslim

    Hello Maria, A decentralized market, without a central physical location,

    Read more
  • Guru forex ask newest Apinya Kamon
    Apinya Kamon

    Hello LuckyMan, The Great Recession is a term that represents the sharp

    Read more
  • Guru forex ask newest Anton Luyten
    Anton Luyten

    Hello Andrew, A maintenance margin is the minimum amount of equity that must

    Read more