Stock Split Calculator
Calculate your new share count and price per share after a stock split or reverse split.
Understanding Stock Splits
A stock split increases the number of shares while proportionally decreasing the price per share. Your total investment value stays exactly the same. For example, a 4-for-1 split turns 100 shares at $500 into 400 shares at $125. A reverse split works the opposite way, reducing shares and increasing the price.
Enter the split ratio as "New Shares per Old Share." A 4-for-1 split is 4/1. A 1-for-10 reverse split is 1/10.
Frequently Asked Questions
What is a stock split?
A stock split divides each existing share into multiple new shares, lowering the price per share proportionally. If you own 100 shares at $200 and the company does a 2-for-1 split, you will have 200 shares at $100 each. Your total investment value does not change.
Why do companies split their stock?
Companies typically split their stock to make shares more affordable for individual investors. A lower price per share can increase trading liquidity and make the stock accessible to more buyers. It is often seen as a sign of confidence, since companies usually split after strong price gains.
What is a reverse stock split?
A reverse split combines multiple shares into fewer shares at a higher price. For example, a 1-for-10 reverse split turns 1,000 shares at $1 into 100 shares at $10. Companies often do this to meet minimum price requirements for stock exchange listing or to improve the stock's perceived value.
Does a stock split affect the value of my investment?
No, a stock split does not change the total value of your investment. You end up with more shares at a lower price (or fewer shares at a higher price for a reverse split), but the math always balances out. The split itself is neither a gain nor a loss.
What are common stock split ratios?
The most common ratios are 2-for-1, 3-for-1, and 4-for-1. Some high-priced stocks have done larger splits, like 10-for-1 or 20-for-1. Reverse splits are typically 1-for-5, 1-for-10, or 1-for-20. The ratio depends on the company's target price range.