Split
What is it? The issuance of more stock to shareholders. Companies use various formulas to determine how much stock each shareholder should get, such as 2-for-1 or 3-for-2. If you own 100 shares of the stock YUP, valued at $20 per share, a 2-for-1 split means you will have 200 shares valued at $10 a share. In each case your stake is worth $2,000. Although a stock split does not increase a stock?s price per se, it is generally regarded as a positive move. In many cases the stock has just enjoyed a run-up, and the company decides to split the stock in anticipation of further gains. Many companies like their stocks to trade in the $20- to $45-a-share range, which is most accessible to investors. Stock prices often jump after the announcement of a stock split and then fall after the split occurs as speculators cash in their profits.Added By: Gabriella
The Split definition has been viewed 231 Time(s)!
Send To Friends!
If you'd like to send the Split definition to yourself or to your friends/colleagues, just enter the e-mail addresses in the boxes below -We hope you now understand the meaning of Split. If you need any more information on this term, please don't hesitate to contact us.