Stock Split defined: A stock split is a corporate action in which a company’s existing shares are divided into multiple shares. The total dollar value of the shares does not change because earnings per share remain proportional to pre-split levels. Stock splits do not add any value to shareholder’s equity but make share transactions more liquid since the price is more manageable for small investors.
Above is a definition for “Stock Split” from PrivCo’s Private Company Knowledge Bank, the definitive online and e-book guide to private companies and private company deals.
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