Word forms: (regular plural) stock splits
( Finance : Investment , Stocks )
A stock split increases the total number of shares while lowering the price of each share without
changing the market capitalization, or total value, of the shares held.
If a management team believes the shares of its firm are undervalued, it can signal
this to potential investors by performing a stock split.
A stock split is a situation in which the number of shares outstanding by a company is increased,
usually to make the price of shares lower.
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