Share Split
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Description
An increase in the number of shares outstanding with a corresponding decrease in par value per share. The additional shares are distributed proportionally to all ordinary shareholders. The purpose of a share split is to reduce market price per share and encourage wider public ownership of the company's shares. A 2-for-1 share split will give each shareholder twice as many shares as previously owned.
Concept Prerequisite
Wikipedia Reference
http://en.wikipedia.org/wiki/Stock split
Learning Material
Covered in Topic(s)
| Stockholders Equity: Paid in Capital |