Stock split
Stock split is issuing of additional shares of stock to stockholders; total par or stated value remains the same.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Stock split. Issuing of additional shares of stock to stockholders; total par or stated value remains the same.
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Stock split. Current shareholders are given some number (or fraction) of shares for each stock share owned. Thus, in a 3-for-1 split, each shareholder would receive three new shares in exchange for each old share, thereby tripling the number of shares outstanding. Stock splits usually occur when the stock price is outside of the optimal trading range.
Related concepts
- Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.
