Stock split

The division of the outstanding shares of a corporation into a larger number of shares. For example, a 3-for-1 split by a company with 1 million shares outstanding selling at $75 per share would result in 3 million shares outstanding selling at $25 per share. Each holder of 100 shares after the 3-for-1 split would be entitled to 300 shares. His proportionate equity in the company would remain the same.