Stock Split Calculator

A stock split is a corporate action where a company increases the number of its outstanding shares by dividing each existing share into multiple shares. The total market value of all shares remains the same — the company is essentially slicing the same pie into more pieces. For example, in a 2-for-1 split, a shareholder with 100 shares at $50 each ends up with 200 shares at $25 each.

Multiply your current number of shares by the split ratio factor. The split ratio factor is the numerator divided by the denominator. For example, in a 3-for-1 split, the factor is 3/1 = 3, so 100 shares becomes 300 shares. In a 5-for-2 split, the factor is 2.5, so 100 shares becomes 250 shares.

Divide the current share price by the split ratio factor. If the split ratio factor is 2 (a 2-for-1 split), a $100 share becomes $50. This ensures the total value of your holdings remains unchanged after the split.

A reverse stock split reduces the number of outstanding shares while proportionally increasing the price per share. For example, in a 1-for-10 reverse split, every 10 shares you own become 1 share, and the price increases tenfold. Companies often use reverse splits to boost a low share price, sometimes to meet stock exchange listing requirements.

No — a stock split does not change the total value of your investment. Whether you have 100 shares at $50 or 200 shares at $25 after a 2-for-1 split, your total holding value remains $5,000. The split only adjusts the quantity and price per unit proportionally.

To calculate your new cost basis per share after a stock split, divide your original total cost basis by the new number of shares you hold. For example, if you paid $5,000 for 100 shares and went through a 2-for-1 split to get 200 shares, your new cost basis per share is $5,000 / 200 = $25 per share. The total cost basis itself does not change.

After a stock split, the dividend per share is typically adjusted proportionally so that the total dividend payout remains the same. For example, if a company paid $1.00 per share dividend and a 2-for-1 split occurs, the dividend per share would become $0.50, but since you now have twice as many shares, your total dividend income stays the same.

A reverse stock split can sometimes signal financial trouble, as companies often use them to artificially boost a falling share price and avoid delisting from a stock exchange. However, it is not always negative — some companies use reverse splits as part of a broader restructuring strategy. Investors should look at the company's fundamentals rather than the split alone.