BizJourney
Home › Glossary › Finance › Owners & Shares › Stock split

What is Stock split?

Stock split: Dividing shares into more shares, lowering each price without changing total value.

Where Stock split fits

Stock split is part of Owners & Shares in Finance. Owners hold shares and earn through dividends. Limited liability caps their loss at what they invested, and stock options reward staff with ownership.

Practical tip

Decide whether you want growth (reinvest) or income (dividends).

Related terms

Shareholder
A person or firm that owns shares in a company.
Dividend
A share of profit paid out to shareholders.
Stock options
The right to buy company shares at a fixed price, used as a perk.
Limited liability
Owners risk only what they invested, not personal assets.

Formulas you will use with it

Dividend yieldEarnings per share

Test yourself

Which term means: “Dividing shares into more shares, lowering each price without changing total value.”?

Dividend · Stock options · Stock split

Answer: Stock split

Learn Stock split by playing

Quizzes, a CEO simulator, a real estate tycoon game and startup tools. Free to start, in 7 languages.

Play BizJourney free →