Stock split
Dividing each share into smaller ones, so you hold more shares at a lower price each.
A stock split divides each share into smaller pieces. You get more shares, each at a lower price, and your holding’s value stays about the same. A company’s market capitalisation doesn’t change because of a split. Compare it with a bonus issue in our corporate actions explainer.
Questions people ask
What is a stock split?
A company divides each existing share into a set number of smaller shares, and the face value is divided in the same ratio. You end up with more shares, each priced lower.
Does a stock split increase my investment's value?
No. The price per share falls in proportion, so your holding is worth about the same on the day. The company's business and total value don't change.
Is a stock split the same as a bonus issue?
They have a similar effect on your holding, but differ in detail. A split divides face value; a bonus issues new shares from reserves and keeps face value the same.
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