Stock Split Calculator

Not at the split itself. A stock split changes the number of shares and the price per share by the same ratio, so the immediate position value stays the same before the market trades the stock again.

Divide the current share price by the split ratio for a forward split, or multiply by the inverse ratio for a reverse split. In formula form, new price equals current price times old ratio divided by new ratio.

The total basis of the position usually stays the same, but the basis per share is spread across the new total share count. If a 2-for-1 split doubles the shares, the basis per share is generally cut in half.

That depends on the corporate action and the broker or transfer agent. Some positions may keep the fractional share, while others receive cash in lieu for the leftover fraction. This calculator can estimate the cash-in-lieu amount using the split-adjusted share price.

Common reasons include trying to meet exchange listing minimums, moving away from very low per-share prices, or reshaping the capital structure. A reverse split raises the displayed price per share, but it does not automatically improve the business.

Dividend amounts per share are usually adjusted proportionally to the split ratio. You may receive more shares at a lower dividend per share after a forward split, or fewer shares at a higher dividend per share after a reverse split, while the economic effect remains broadly similar.

A plain stock split is generally not a taxable event by itself in many jurisdictions, but cash received in lieu of a fractional share may be reportable. Tax treatment depends on jurisdiction, account type, and tax-lot details, so this page keeps the guidance educational rather than personalized.

A stock split adjusts every shareholder by the same ratio, so ownership percentages stay the same. Dilution happens when new shares are issued in a way that reduces existing holders' percentage ownership.