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Impact on the Company

Company XYZ has 1,000,000 shares outstanding, worth $100 per share, giving them a market capitalization of $100,000,000.

XYZ then declares a 2:1 Stock Split.

This doubles the number of shares (from 1,000,000 to 2,000,000), but cuts the price per share in half (from $100 to $50).

Now the company has 2,000,000 shares outstanding, worth $50 per share.  Their market capitalization remains $100,000,000 - no change!