split ratio

split ratio definition - business

split ratio

The ratio by which the number of a firm's outstanding shares of stock are increased following a stock split. For example, a two-for-one split results in twice as many outstanding shares, with each share selling at half its presplit price. A higher split ratio results in a greater reduction in the price of the stock.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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