Calculate new share count, adjusted price per share, and cost basis after any stock split or reverse stock split. Total investment value stays the same.
Major stock splits from some of the most well-known companies. These splits made shares more accessible to retail investors.
| Company | Ticker | Date | Ratio | Pre-Split Price | Post-Split Price | Notes |
|---|
More shares, lower price. Total value stays the same. Companies split when share prices get high enough to deter retail investors or limit options accessibility.
Common ratios: 2:1, 3:1, 4:1, 5:1, 10:1, 20:1
Signal: Generally positive — stock has risen significantly
Example: 100 shares at $1,000 → 1,000 shares at $100 (10:1 split)
Fewer shares, higher price. Total value stays the same. Companies reverse-split to meet exchange minimum listing requirements or attract institutional investors.
Common ratios: 1:2, 1:5, 1:10, 1:20
Signal: Often negative — stock has fallen sharply
Example: 1,000 shares at $0.50 → 100 shares at $5.00 (1:10 reverse)
A stock split is purely cosmetic from a valuation standpoint. Splitting a $1,000 stock 10-for-1 does not create wealth — it is like exchanging a $100 bill for ten $10 bills. Market cap, PE ratio, and all fundamental metrics remain identical immediately after the split. However, research shows that stocks tend to outperform the market slightly in the months following a split announcement, likely because the announcement itself signals management confidence in continued growth.
While forward splits are generally associated with strong performance (the stock has risen enough to warrant splitting), reverse splits carry a negative stigma. Companies typically reverse-split to avoid exchange delisting when their share price falls below the $1 minimum. Studies show that stocks underperform on average after reverse splits. However, not all reverse splits are negative — some companies do them to attract institutional investors who have minimum price requirements or to reduce administrative costs from having too many shares outstanding.
The traditional argument for stock splits — making shares affordable — has weakened since most brokerages now offer fractional share trading. You can buy $50 of Berkshire Hathaway (Class A trades above $600,000) without needing a split. Despite this, companies like Amazon, Google, Nvidia, and Chipotle have all split in recent years, suggesting that psychological pricing, options accessibility, and index eligibility remain powerful motivations beyond simple affordability.
Stock split calculations use the standard formula: New Shares = Old Shares × (Split Ratio). New Price = Old Price ÷ (Split Ratio). For reverse splits, the ratio is inverted. Total position value (Shares × Price) remains constant before and after the split. Cost basis per share is adjusted by the same ratio.
Historical split data is sourced from public company records and SEC filings. Pre-split and post-split prices are approximate closing prices on the split date. All figures are for educational reference.