Stock Split Calculator
Calculate share quantity and price adjustments after stock splits and reverse stock splits
Calculate Stock Split
Before Stock Split
Shares owned before the split
Price per share before split
Stock Split Ratio
for
Example: 2:1 means 2 new shares for every 1 old share (stock split)
Example: 1:5 means 1 new share for every 5 old shares (reverse split)
Common Split Ratios
After Stock Split
Split Analysis
Example Calculations
Stock Split Example (2:1)
Before Split: 100 shares at $50.00 = $5,000 total value
Split Ratio: 2:1 (2 new shares for every 1 old share)
After Split: 200 shares at $25.00 = $5,000 total value
Result: Double the shares, half the price, same total value
Reverse Split Example (1:5)
Before Split: 200 shares at $10.00 = $2,000 total value
Split Ratio: 1:5 (1 new share for every 5 old shares)
After Split: 40 shares at $50.00 = $2,000 total value
Result: Fewer shares, higher price, same total value
Complex Split Example (3:2)
Before Split: 10 shares at $100.00 = $1,000 total value
Split Ratio: 3:2 (3 new shares for every 2 old shares)
Calculation: 10 × (3/2) = 15 shares at $100 ÷ (3/2) = $66.67
After Split: 15 shares at $66.67 = $1,000 total value
Types of Stock Splits
Stock Split
Increases share count
Makes shares more affordable
Reverse Split
Decreases share count
Increases share price
No Change
1:1 ratio maintains status
No split occurs
Market Impact
Market cap remains unchanged
Ownership percentage stays the same
May increase liquidity and trading
Can signal management confidence
Makes shares more accessible
Understanding Stock Splits
What is a Stock Split?
A stock split is a corporate action where a company divides its existing shares into multiple shares. The total value of the investment remains the same, but the number of shares increases and the price per share decreases proportionally.
Why Do Companies Split Stocks?
- •Make shares more affordable for investors
- •Increase liquidity and trading volume
- •Signal confidence in future growth
- •Attract more retail investors
Stock Split Formulas
New Shares = Old Shares × Split Ratio
New Price = Old Price ÷ Split Ratio
Key Points
- Split Ratio: Determines the conversion rate (e.g., 2:1, 3:2)
- Market Cap: Total company value remains unchanged
- Ownership: Your percentage ownership stays the same
- Liquidity: Often increases after a split
Remember: Stock splits don't change the fundamental value of your investment