Stock Split Calculator
Calculate the impact of stock splits on your investment. This calculator shows how splits affect share price, total shares owned, and overall investment value.
Current Position
Split Details
Split Results
New Shares Owned:
New Share Price:
$0.00
Total Value:
$0.00
Split Analysis
Price Change:
$0.00
Shares Change:
Value Preservation:
Maintained
Investment Insights
Split Reason:
N/A
Market Impact:
N/A
Investment Strategy:
N/A
Understanding Stock Splits
A stock split is a corporate action where a company divides its existing shares into multiple shares to boost the total number of shares outstanding. While the total value of shares remains the same, stock splits can make shares more accessible to retail investors and may signal company confidence.
How Stock Splits Work
Forward Split Example
- 2:1 split means each share becomes 2 shares
- $100 stock price becomes $50
- 100 shares become 200 shares
- Total value remains $10,000
Reverse Split Example
- 1:2 split means 2 shares become 1 share
- $10 stock price becomes $20
- 200 shares become 100 shares
- Total value remains $2,000
Common Split Ratios
Split Ratio Examples
Most common stock split ratios
Forward Splits
- 2:1 (most common)
- 3:1 (less common)
- 4:1 (rare)
- 10:1 (very rare)
Reverse Splits
- 1:2 (most common)
- 1:3 (common)
- 1:4 (less common)
- 1:10 (rare)
Reasons for Stock Splits
| Reason | Purpose | Impact |
|---|---|---|
| Price Accessibility | Make shares affordable for retail investors | Increases liquidity and trading volume |
| Market Perception | Signal company growth and confidence | Positive market reaction |
| Employee Compensation | Increase shares available for options | Better employee incentives |
Reverse Split Reasons
Exchange Requirements
- Maintain minimum share price
- Avoid delisting
- Meet exchange standards
- Regulatory compliance
Attract Investors
- Perceived premium pricing
- Reduce volatility
- Attract institutional investors
- Improve market image
Tax and Accounting Impact
No Tax Impact
- Stock splits are not taxable events
- No capital gains or losses
- Cost basis adjusted proportionally
- Tax lots remain the same
Cost Basis Adjustment
- Cost per share is divided
- Total cost basis unchanged
- Tax reporting unaffected
- Long-term holding periods preserved
Market Impact of Splits
Short-term Effects
- Increased trading volume
- Temporary price volatility
- Media attention
- Investor excitement
Long-term Effects
- Better liquidity
- Wider investor base
- Improved marketability
- Enhanced trading options
Key Takeaways for Stock Split Calculator
- Stock splits don't change the total value of your investment - they only divide the price and multiply the shares
- Forward splits (like 2:1) make shares more affordable and increase trading volume
- Reverse splits (like 1:2) are used to meet exchange requirements or attract certain investors
- Stock splits are not taxable events and don't affect your cost basis proportionally
- The calculator helps you understand exactly how splits affect your share count and price
- Most stock splits are forward splits that make shares more accessible to retail investors
- Companies often announce splits when their stock price has risen significantly
- Use the calculator to plan your investment strategy around potential stock splits