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stock split
noun
: a division of corporate stock by the issuing to existing shareholders of a specified number of new shares with a corresponding lowering of par value for each outstanding share compare stock dividend
Examples of stock split in a Sentence
Recent Examples on the Web
The company has implemented a reverse stock split to regain compliance with Nasdaq's minimum bid price requirement and has appointed new independent directors to address corporate governance deficiencies.
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Quartz Intelligence Newsroom, Quartz, 6 Feb. 2025
The company implemented a 20-for-1 stock split in 2022.
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Yeo Boon Ping, CNBC, 27 Jan. 2025
With $1,000 clearly in sight, Netflix could be headed for its first stock split in a decade.
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Tony Maglio, IndieWire, 22 Jan. 2025
After a 1-for-20 reverse stock split on September 5, 2024 to bring the stock price above the $1 a share level required to comply with Nasdaq listing requirements, the company’s stock has fallen about 16%.
—
Peter Cohan, Forbes, 27 Dec. 2024
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Word History
First Known Use
1950, in the meaning defined above
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Cite this Entry
“Stock split.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/stock%20split. Accessed 16 Feb. 2025.
Legal Definition
stock split
noun
: the division of the outstanding shares of a corporation into a larger number of shares thereby reducing the value of each share but not the total value of each holding compare reverse stock split
Note: The purpose of a stock split is to make the stock more attractive to potential investors by reducing the price per share.
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