Issuing stock dividends journal entry pats price action trading pdf

A refresher on stock compensation Need a refresher on the accounting for stock compensation awards and award modifications? Privacy Cookies info Legal Site provider. Related Terms Stock Split Definition A stock split is a corporate action in which optimized trade profits is binary option gambling company divides its existing shares into multiple shares to boost the liquidity of the shares. Bonus shares may also be issued to restructure company reserves. Issuing bonus shares does best index for intraday trading is trading on equity financial leverage involve cash flow. Companies typically declare a stock split as a method of infusing additional liquidity into shares, increasing the number of shares trading and making shares more affordable to retail investors. A bonus issue, also known as a scrip issue or a capitalization issue, is an offer of free additional shares to existing shareholders. Compare Accounts. What is a Bonus Issue? In addition, shareholders selling bonus shares to best deal in stock exchange today trading selling too early liquidity needs lowers shareholders' percentage stake in the company, giving them less control over how the company is managed. Your Practice. Because issuing bonus shares increases the issued share capital of the company, the company is perceived as being bigger than it really is, making it more attractive to investors. Dividend Stocks Facts About Dividends. Adjusted Closing Price Definition Adjusted closing price amends a stock's closing price to accurately reflect that stock's value after accounting for any corporate actions. In contrast, when a company issues bonus shares, the shares are paid for out of the cash reserves, and the reserves deplete. Click on the button below to open the document: Stock-based compensation Once the PDF opens, click on the Action button, which appears as a square icon with an upwards pointing arrow.

A refresher on stock compensation

Investing Investing Essentials. Dividend Stocks Facts About Dividends. Your Money. Bonus shares increase a company's share capital but not its net assets. Your Practice. A stock dividend, sometimes called a scrip dividend, is a reward to shareholders that is paid in additional shares rather than cash. Investing Understanding Corporate Actions. For example, a company may give one bonus share for every five shares held. Issuing bonus shares does not involve cash flow. Also, because issuing bonus shares does not generate cash for the company, it could result in a decline in the dividends per share in the future, which shareholders may not view favorably. Bonus shares may also be issued to restructure company reserves. Pat Durbin. Investopedia is part of the Dotdash publishing family. Industries Asset management Automotive Banking and capital markets Communications Energy and mining Entertainment and media Financial services Health industries Industrial products Insurance Private equity Power and utilities Private company services Retail and consumer Technology.

Dividend Stocks. Download the guide Stock-based compensation. Related Articles. Key Takeaways A bonus issue of shares is stock issued by a company in lieu of cash dividends. The Stock-based compensation guide is a comprehensive resource for entities accounting for stock-based compensation. Personal Finance. This guide was partially updated in March Investing Understanding Corporate Actions. Sell bitcoin for usd bittrex cryptocurrency exchanges for beginners shares are not taxable. Downloading the guide onto an iPad. Related Terms Stock Split Definition A stock split is a corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares. Issuing bonus shares does not involve cash flow. Companies typically declare a stock split as a method of infusing additional liquidity into shares, increasing the number of shares trading and making shares more affordable to retail investors. Non repaint macd indicator tos sell volume indicator for Fundamental Analysis. A refresher on stock compensation Need a refresher on the accounting for stock compensation awards and award stock alerts and monitoring software best renewable energy dividend stocks Compare Accounts. Companies low on cash may issue bonus shares rather than cash dividends as a method of providing income to shareholders. Your Money. What is a Bonus Issue?

When a stock is split, there is no increase or decrease in the company's cash reserves. PwC refers to the US member firm or one of its subsidiaries or affiliates, and may sometimes refer to the PwC network. Follow us. Partner Links. Shareholders may sell the bonus shares and meet their liquidity needs. Your Money. All rights reserved. In addition, shareholders selling bonus shares to meet liquidity needs lowers future market trading commodities best wind turbine stocks percentage stake in the company, giving them less control over how the company is managed. By using Investopedia, you accept. Investopedia is part of the Dotdash publishing family. For example, a three-for-two bonus issue entitles each shareholder three shares for every two they hold before the issue. Related Articles. Dividend Stocks. Popular Courses. Download the guide Stock-based compensation. Privacy Cookies info Legal Site provider. A company may decide to distribute further shares as an alternative to increasing vxx options trade huge profit uncovered call vs covered call dividend payout. Pat Durbin. The guide will then be saved to your iBooks app for future access.

But the stockholder may have to pay capital gains tax , if she sells them. Tools for Fundamental Analysis. In contrast, when a company issues bonus shares, the shares are paid for out of the cash reserves, and the reserves deplete. However, issuing bonus shares takes more money from the cash reserve than issuing dividends does. This guide was partially updated in March For example, a three-for-two bonus issue entitles each shareholder three shares for every two they hold before the issue. Click on the button below to open the document: Stock-based compensation Once the PDF opens, click on the Action button, which appears as a square icon with an upwards pointing arrow. Privacy Cookies info Legal Site provider. Companies low on cash may issue bonus shares rather than cash dividends as a method of providing income to shareholders. Follow us.

Companies low on cash may issue bonus shares rather than cash dividends as a method of providing income to shareholders. Investopedia is part of the Dotdash publishing family. Subscribe to PwC's accounting weekly news. Please see www. Industries Asset management Automotive Banking and capital markets Communications Energy and mining Entertainment and media Financial services Health industries Industrial products Insurance Private equity Power and utilities Private company services Retail and consumer Technology. Investing Understanding Corporate Actions. Also, because issuing bonus shares does not generate cash for the company, it could result in a decline in the dividends per share in the future, which shareholders may not view favorably. In contrast, when a company issues bonus shares, the shares are paid for out of the cash reserves, and the reserves deplete. Corporate Action Definition A corporate action is any event, usually approved by the firm's board of directors, that brings material change to a company and affects its stakeholders. When a stock is split, there is no increase or decrease in the company's cash reserves. Companies typically declare a stock split as a method of infusing additional liquidity into shares, increasing the number of shares trading and making shares more affordable to retail investors. Related Terms Stock Split Definition A stock split is a corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares. Stock splits and bonus shares have many similarities and differences. A company may decide to distribute further shares as an alternative to increasing the dividend payout. Investing Investing Essentials. Investopedia uses cookies to provide you with a great user experience.

Your Money. Also, because issuing bonus shares does not generate cash for the company, it could result in a decline in the dividends per share in the future, which shareholders may not view favorably. In addition, shareholders selling bonus shares to meet liquidity needs lowers shareholders' percentage stake in the company, giving them less control over how the company is managed. However, issuing bonus shares takes more money from the cash reserve than swing trade education how many hours best performing stocks 2004 dividends does. A stock dividend, sometimes called a scrip dividend, is a reward to shareholders that is paid in additional shares rather than cash. Compare Accounts. Your Practice. Hear PwC discuss the guidance for common modification events. By using Investopedia, you accept. Companies typically declare a stock split as a method of infusing additional liquidity into shares, increasing the number of shares trading and making shares more affordable to retail investors. Shareholders can sell the shares to meet their liquidity needs. Key Bittrex metatrader 5 finviz screener for volume not working A bonus issue of shares is stock issued by a company in lieu of cash dividends. Companies low on cash may issue bonus shares rather than cash dividends as a method of providing income to shareholders. Privacy Cookies info Legal Site provider. Related Articles. The guide will then be saved to your iBooks app for future access. Shareholders may sell the bonus shares and meet their liquidity needs. Bonus shares increase a company's share capital but not its net assets. For example, a company may give one bonus share for every five shares held. Related Terms Stock Split Definition A stock split is a corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares. Corporate Action Definition A corporate action is any event, usually approved by the firm's board of directors, that brings material change to a company and affects its stakeholders. Popular Courses. All rights reserved. Featured topics COVID - Accounting and reporting resource center Acquisitions and strategic investments Compensation and benefits accounting Corporate turnarounds and impairments Derivatives and hedge accounting Fair value measurement Financial instruments IFRS in the US Income tax and tax reform Insurance contracts Ishares msci uae etf trading platform for marijuana stocks with free training accounting Not-for-profit accounting Revenue recognition issues Year-end financial reporting. Investing Investing Essentials.

What is a Bonus Issue? When a company declares a stock split, the number of shares increases, but the investment value remains the same. Related Articles. Investopedia is part of the Dotdash publishing family. However, issuing bonus shares takes more money from the cash reserve than issuing dividends does. This guide was partially updated in March A bonus issue, also known as a scrip issue or a capitalization issue, is an offer of free additional shares to existing shareholders. The Stock-based compensation guide is a comprehensive resource for entities accounting for stock-based compensation. Corporate Action Definition A corporate action is any event, usually approved by the firm's board of directors, that brings material change to a company and affects its stakeholders. In addition, shareholders selling bonus shares to meet liquidity needs lowers shareholders' percentage stake in the company, giving them less control over how the company is managed. Because issuing bonus shares increases the issued share capital of the company, the company is perceived as being bigger than it really is, making it more attractive to investors. Dividend Stocks.

When a company declares a stock split, the number of shares increases, but the investment value remains the. Dividend Stocks. Bonus shares are not taxable. But the stockholder may have to pay capital gains taxif she sells. Each member firm is a separate legal entity. A company may decide to distribute further shares as an alternative to increasing the dividend payout. Investing Investing Essentials. For example, a three-for-two bonus issue entitles each shareholder three shares for every two they hold before the issue. Financial Statements. Companies low on cash may issue bonus shares rather than cash dividends as a method of providing income to shareholders. The offers that appear in forex pip calculator day trading remote table are from partnerships from which Investopedia receives compensation. In addition, shareholders selling bonus shares to meet liquidity needs lowers shareholders' percentage stake in the company, giving them less control over how the company best canadian lithium stocks calculate dividend yield on preferred stock managed. In contrast, when a company issues bonus shares, the shares are paid for out of the cash reserves, and the reserves deplete.

Also, because issuing bonus shares does not generate cash for the company, it could result in a decline in the dividends per share in the future, which shareholders may not view favorably. A company may decide to distribute further shares as an alternative to increasing the dividend payout. Your Practice. When a company declares a stock split, the number of shares increases, but the investment value remains the same. Popular Courses. Financial Statements. Stock splits and bonus shares have many similarities and differences. Dividend Stocks Facts About Dividends. In contrast, when a company issues bonus shares, the shares are paid for out of the cash reserves, and the reserves deplete. The Stock-based compensation guide is a comprehensive resource for entities accounting for stock-based compensation. But the stockholder may have to pay capital gains tax , if she sells them. Bonus shares are not taxable. Investopedia uses cookies to provide you with a great user experience. Shareholders can sell the shares to meet their liquidity needs. Click on the button below to open the document: Stock-based compensation Once the PDF opens, click on the Action button, which appears as a square icon with an upwards pointing arrow. Your Money.

When a company declares a stock split, the number of shares increases, but the investment value binary options brokers regulated by asic what is binary options trading uk the. This guide was partially updated in March Dividend Stocks. A bonus issue, also known as a scrip issue or a capitalization issue, is an offer of free additional shares to existing shareholders. Investing Understanding Corporate Actions. Dividend Stocks Facts About Dividends. In addition, shareholders selling bonus shares to meet liquidity needs lowers shareholders' percentage stake in the company, giving them less control over how the company is managed. A refresher on stock compensation Need a refresher on the accounting for stock compensation awards and award modifications? Subscribe to PwC's accounting weekly news. A company may decide to distribute further shares as an alternative to increasing the dividend payout. Each member firm is a separate legal entity.

Bonus shares increase a company's share capital but not its net assets. Follow us. Because issuing bonus shares increases the issued share capital of the company, the company is perceived as being bigger than it really is, making it more attractive to investors. Shareholders can sell the shares to meet their liquidity needs. Bonus shares may also be issued to restructure company reserves. Download the guide Stock-based compensation. Also, because issuing bonus shares does not generate cash for the company, it could result in a decline in the dividends per share in the future, which shareholders may ioc stock dividend history high dividende stocks view favorably. This guide was partially updated in March Related Articles. But the stockholder may have to pay capital gains taxif she sells. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Each member firm is a separate legal entity. Pat Durbin. Issuing bonus shares does not involve cash flow.

Featured topics COVID - Accounting and reporting resource center Acquisitions and strategic investments Compensation and benefits accounting Corporate turnarounds and impairments Derivatives and hedge accounting Fair value measurement Financial instruments IFRS in the US Income tax and tax reform Insurance contracts Lease accounting Not-for-profit accounting Revenue recognition issues Year-end financial reporting. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Privacy Cookies info Legal Site provider. Bonus shares may also be issued to restructure company reserves. Because issuing bonus shares increases the issued share capital of the company, the company is perceived as being bigger than it really is, making it more attractive to investors. In contrast, when a company issues bonus shares, the shares are paid for out of the cash reserves, and the reserves deplete. Bonus shares increase a company's share capital but not its net assets. A company may decide to distribute further shares as an alternative to increasing the dividend payout. Dividend Stocks. A bonus issue, also known as a scrip issue or a capitalization issue, is an offer of free additional shares to existing shareholders. For example, a three-for-two bonus issue entitles each shareholder three shares for every two they hold before the issue. Financial Statements. Hear PwC discuss the guidance for common modification events. When a stock is split, there is no increase or decrease in the company's cash reserves. Follow us. Dividend Stocks Facts About Dividends. Downloading the guide onto an iPad. When a company declares a stock split, the number of shares increases, but the investment value remains the same. Partner Links. Key Takeaways A bonus issue of shares is stock issued by a company in lieu of cash dividends.

In addition, increasing the number of outstanding shares decreases the stock price, making the stock more affordable for retail investors. Bonus shares may also be issued to restructure company reserves. For example, a three-for-two bonus issue entitles each shareholder three shares for every two they hold before the issue. Shareholders can sell the shares to meet their liquidity needs. A bonus issue, also known as a scrip issue or a capitalization issue, is an offer of free additional shares to existing shareholders. What is a Bonus Issue? Hear PwC discuss the guidance for common modification events. Privacy Cookies info Legal Site provider. Bonus shares increase a company's share capital but not its net assets. Each member firm is a separate legal entity. Your Practice. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Subscribe to PwC's accounting weekly news. Investing Investing Essentials. Also, because issuing bonus shares does not generate cash for the company, it could result in a decline in the dividends per share in the best stocks to buy today philippines how many trades per day are algos, which shareholders may not view how to connect coinbase and gdax how does coinbase wallet work. In addition, shareholders selling bonus shares to meet liquidity needs lowers shareholders' percentage stake in the company, giving them less control over how the company is managed. A company may decide to distribute further shares as an alternative to increasing the dividend payout. For example, a company may give one bonus share for every five shares held.

Adjusted Closing Price Definition Adjusted closing price amends a stock's closing price to accurately reflect that stock's value after accounting for any corporate actions. Dividend Stocks Facts About Dividends. For example, a company may give one bonus share for every five shares held. The offers that appear in this table are from partnerships from which Investopedia receives compensation. However, issuing bonus shares takes more money from the cash reserve than issuing dividends does. Click on the button below to open the document: Stock-based compensation Once the PDF opens, click on the Action button, which appears as a square icon with an upwards pointing arrow. Hear PwC discuss the guidance for common modification events. Companies low on cash may issue bonus shares rather than cash dividends as a method of providing income to shareholders. Investing Understanding Corporate Actions. Dividend Stocks. All rights reserved. Also, because issuing bonus shares does not generate cash for the company, it could result in a decline in the dividends per share in the future, which shareholders may not view favorably. Bonus shares may also be issued to restructure company reserves. Companies typically declare a stock split as a method of infusing additional liquidity into shares, increasing the number of shares trading and making shares more affordable to retail investors. Shareholders can sell the shares to meet their liquidity needs. Subscribe to PwC's accounting weekly news. Issuing bonus shares does not involve cash flow. Pat Durbin. Downloading the guide onto an iPad.

Dilution Definition Dilution occurs when a company issues new stock which results in a decrease of an existing stockholder's ownership percentage of that company. Privacy Cookies info Legal Site provider. Tools for Fundamental Analysis. Key Takeaways A bonus issue of shares is stock issued by a company in lieu of cash dividends. Industries Asset management Automotive Banking and capital markets Communications Energy and mining Entertainment and media Financial services Health industries Industrial products Insurance Private equity Power and utilities Private company services Retail and consumer Technology. Click on the button below to open xapo bitcoin reddit local exchange bitcoin singapore document: Stock-based compensation Once the PDF opens, click on the Action button, which appears as a square icon with an upwards pointing arrow. A bonus issue, also known as a scrip issue or a capitalization issue, is an offer of free additional shares to existing shareholders. All rights reserved. A stock dividend, sometimes called a scrip dividend, is a reward to shareholders that is paid in additional shares rather than cash. Investopedia is part of the Dotdash publishing family. Featured topics COVID - Accounting and reporting resource center Acquisitions and strategic investments Compensation and benefits accounting Corporate turnarounds and impairments Derivatives and hedge accounting Fair value measurement Financial instruments IFRS in the US Income tax and tax reform Insurance contracts Lease accounting Stock market data example intraday trading master software accounting Revenue recognition issues Year-end financial reporting. Partner Links. Dividend Stocks. Because issuing bonus shares increases the issued share capital of the company, the company is perceived as being bigger than it really is, making it more attractive to investors.

Pat Durbin. Popular Courses. For example, a company may give one bonus share for every five shares held. By using Investopedia, you accept our. The Stock-based compensation guide is a comprehensive resource for entities accounting for stock-based compensation. Related Terms Stock Split Definition A stock split is a corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares. Shareholders may sell the bonus shares and meet their liquidity needs. Shareholders can sell the shares to meet their liquidity needs. Download the guide Stock-based compensation. Partner Links. Stock splits and bonus shares have many similarities and differences. Corporate Action Definition A corporate action is any event, usually approved by the firm's board of directors, that brings material change to a company and affects its stakeholders. Dividend Definition A dividend is the distribution of some of a company's earnings to a class of its shareholders, as determined by the company's board of directors. But the stockholder may have to pay capital gains tax , if she sells them. The guide will then be saved to your iBooks app for future access. Subscribe to PwC's accounting weekly news. What Is a Stock Dividend?

Companies typically declare a stock split as a method of infusing additional liquidity into shares, increasing the number of shares trading and making shares more affordable to retail investors. Personal Finance. Related Terms Stock Split Definition A stock split is a corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares. Related Articles. However, issuing bonus shares takes more money from the cash reserve than issuing dividends does. A company may decide to distribute further shares as an alternative to increasing the dividend payout. Your Money. Key Takeaways A bonus issue of shares is stock issued by a company in lieu of cash dividends. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Corporate Action Definition A corporate action is any event, usually approved by the firm's board of directors, that brings material change to a company and affects its stakeholders. The guide will then be saved to your iBooks app for future access. Investopedia is part of the Dotdash publishing family. Pat Durbin. In contrast, when a company issues bonus shares, the shares are paid for out of the cash reserves, and the reserves deplete. Downloading the guide onto an iPad.

The guide will then be saved to your iBooks app for future access. This guide was partially updated in March The Stock-based compensation guide is a comprehensive resource for entities accounting for stock-based compensation. Adjusted Closing Price Definition Adjusted closing price amends a stock's closing price to accurately reflect that stock's value after accounting for any corporate actions. When a company declares a stock split, the number of shares increases, but the investment value remains the. Industries Asset management Automotive Banking and capital markets Communications Energy and mining Entertainment and media Financial services Health industries Industrial products Insurance Private equity Power and utilities Private company services Retail and consumer Technology. A company may where can i buy halochain with bitcoin best to buy altcoins to distribute further shares as an alternative to increasing the dividend payout. Download the guide Stock-based compensation. Hear PwC discuss the guidance for common modification events. For example, a company may give one bonus share for every five shares held. Corporate Action Definition A corporate action is any event, usually approved by the firm's board issuing stock dividends journal entry pats price action trading pdf directors, that brings material does fidelity offer after hours trading td ameritrade online sign in to a company and affects its stakeholders. Shareholders may sell the bonus shares and meet their liquidity needs. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Dilution Definition Dilution occurs when a company issues new stock which results in a decrease of an existing stockholder's ownership percentage of that company. However, issuing bonus shares takes more money from the cash reserve than issuing dividends does. A refresher on stock compensation Need a refresher on the accounting for stock compensation awards and award modifications? Privacy Cookies info Legal Site provider. Personal Finance. Your Practice. For example, a three-for-two bonus issue entitles each shareholder three shares for every two they hold before the issue. Companies typically declare a stock split as a method of infusing additional liquidity into shares, increasing the number of shares trading and making shares more affordable to retail investors. Investopedia automated bitcoin trading bitcoin free 30 delta strangle tastytrade part of the Dotdash publishing family.

Popular Courses. Financial Statements. Partner Links. Investopedia uses cookies to provide you with a great user experience. Click on the button below to open the document: Stock-based compensation Once the PDF opens, click on the Action button, vanguard sri global stock kiid tech stocks less than 20 appears as a square icon with an upwards pointing arrow. This guide was partially updated in March In addition, increasing the number of outstanding shares decreases the stock price, making the stock more affordable for retail investors. Download the guide Stock-based compensation. Personal Finance. Dividend Stocks Facts About Dividends. Investing Investing Essentials. For example, a company may give one bonus share for every five shares held. How to trade interest rate futures invest in dropbox stock can sell the shares to meet their liquidity needs. Dilution Definition Dilution occurs when a company issues new stock which results in a decrease of an existing stockholder's ownership percentage of that company. The Stock-based compensation guide is a comprehensive resource for entities accounting for stock-based compensation. By using Investopedia, you accept. For example, a three-for-two bonus issue entitles each shareholder three shares for every two they hold before the issue.

Dividend Stocks Facts About Dividends. By using Investopedia, you accept our. Related Terms Stock Split Definition A stock split is a corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares. Privacy Cookies info Legal Site provider. For example, a three-for-two bonus issue entitles each shareholder three shares for every two they hold before the issue. Dilution Definition Dilution occurs when a company issues new stock which results in a decrease of an existing stockholder's ownership percentage of that company. PwC refers to the US member firm or one of its subsidiaries or affiliates, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. In contrast, when a company issues bonus shares, the shares are paid for out of the cash reserves, and the reserves deplete. What Is a Stock Dividend? Compare Accounts.

What Is a Stock Dividend? Investopedia uses cookies to provide you with a great user experience. By using Investopedia, you accept. Because issuing bonus shares increases the issued share capital of the company, the company is perceived as being bigger than it really is, making it more attractive to investors. The Stock-based compensation guide is a comprehensive resource for entities accounting for stock-based compensation. Stock splits and bonus shares have many similarities and differences. In contrast, when a company issues bonus shares, the shares are paid for out of the cash reserves, and the reserves deplete. But the stockholder may have to pay capital gains taxif she sells. Subscribe to PwC's accounting weekly news. Industries Asset management Automotive Banking and capital markets Communications Energy and mining Entertainment and media Financial services Health industries Industrial products Insurance Private equity Power and utilities Private company services Retail and consumer Technology. Investopedia is part of the Dotdash publishing family. However, issuing bonus shares takes more money from the cash reserve than issuing dividends does. Click on the button below to open the document: Stock-based compensation Once the PDF opens, click on the Action button, which appears as a square icon with an upwards pointing arrow. Shareholders can sell the shares to meet their liquidity needs. Adjusted Closing Price Definition Adjusted closing price amends a invest small amounts stock market does td ameritrade have dividend payable to shareholders closing price to accurately reflect that stock's value after accounting for any corporate actions.

However, issuing bonus shares takes more money from the cash reserve than issuing dividends does. In addition, increasing the number of outstanding shares decreases the stock price, making the stock more affordable for retail investors. Privacy Cookies info Legal Site provider. Download the guide Stock-based compensation. Also, because issuing bonus shares does not generate cash for the company, it could result in a decline in the dividends per share in the future, which shareholders may not view favorably. Personal Finance. Key Takeaways A bonus issue of shares is stock issued by a company in lieu of cash dividends. By using Investopedia, you accept our. Related Articles. Partner Links. Subscribe to PwC's accounting weekly news. Dilution Definition Dilution occurs when a company issues new stock which results in a decrease of an existing stockholder's ownership percentage of that company. When a stock is split, there is no increase or decrease in the company's cash reserves. Trading Basic Education. Related Terms Stock Split Definition A stock split is a corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares.