What is a Stock Split Calculator
Stock Split calculator is a tool using that anyone can determine value of stock & holing shares quantity along with Price of the stock after stock split. now you are wondering what is the stock split so stock split is a corporate action where a company increases the number of its outstanding shares by dividing each existing share into multiple shares. This effectively reduces the price per share.
Why Do Companies Split Stocks?
Companies often split their stocks for several reasons:
- Improving Stock Liquidity: A lower share price can make the stock more affordable for individual investors, increasing trading volume and liquidity.
- Psychological Impact: A lower share price can sometimes create a perception of better value, even if the underlying fundamentals of the company haven’t changed.
- Making the Stock More Accessible: By lowering the price per share, companies can make their stock more accessible to a wider range of investors.
Stock Split Calculator
Results
New Stock Price:
Total Shares:
Extra Shares:
How Does a Stock Split Work?
Let’s consider a simple example:
- Before the Split: A company has 100 shares outstanding, and each share is worth 100.
- 2-for-1 Split: The company announces a 2-for-1 split(2:1). This means each existing share is divided into two new shares.
- After the Split: The company now has 200 shares outstanding, and each share is worth 50.
Important Note: A Stock Split Doesn’t Change the Total Market Value of the Company
While the number of shares increases, the total market capitalization remains the same. In the example above, the total market value before the split was 10,000 (100 shares * 100/share), and after the split, it’s still 10,000 (200 shares * 50/share).
Input for Stock Split Calculator:
Current Stock Price: Enter the current stock price. try to enter the stock price on the record date.
Stock Split Ratio: Enter the stock split ratio which company announced like 2:1 or 1:2 etc.
Number Of Shares: Enter the number of shares which you are holding.
Output for Stock Split Calculator:
New Stock price: Here you’ll get the output as new stock price so you can able to see the new stock price after stock split.
Total Share: Here you get the total shares which you are going to hold or going to show in your portfolio after stock split.
Extra shares: Here you will get the idea that how many extra shares you will get or going to add in your portfolio after stock split.
Use Our Reverse Stock Split Calculator to Easily Calculate the Impact of a Reverse Split