stock split

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Explanation of "Stock Split"

Definition: A "stock split" is a financial event that occurs when a company increases the number of its shares. This means that each existing share is divided into more shares. However, the total value of the company and the total money that shareholders have remains the same.

Advanced Usage:

In more advanced contexts, you might discuss the reasons why a company would do a stock split, such as making the stock price more attractive to investors or to increase liquidity.

Word Variants:

• Stock Splits (plural): Refers to multiple instances of stock splits.
• Reverse Stock Split: This is when a company reduces the number of its outstanding shares, increasing the share price. For example, in a one-for-two reverse stock split, if you had 2 shares worth $50 each, you would now have 1 share worth $100.

Different Meanings:

• Outside of finance, "split" can mean to divide something into parts. For instance, you can split a pizza with friends.

Synonyms:

• Share Split: Another term for stock split.
• Equity Split: A broader term that can refer to dividing ownership in a company.

Idioms and Phrasal Verbs:

• There aren’t specific idioms or phrasal verbs directly related to "stock split," but you might hear:
  • "Split the difference": This means to find a compromise between two parties.

Summary:

A stock split is a way for companies to adjust their share numbers without changing their overall value.

Academic

Noun

1. an increase in the number of outstanding shares of a corporation without changing the shareholders' equity
   • they announced a two-for-one split of the common stock

Synonyms

• split
• split up