How this number is made
A split changes the share count and the price so the value of the holding stays put. Two-for-one means you receive 2 new shares for each 1 old share, and the price is cut in half. A reverse split is the same form with the first number smaller than the second, such as 1 for 10. The company’s value does not rise because it split.
- “2 for 1” is 2 in the receive box and 1 in the old-shares box.
- Fractional shares depend on the broker. This page keeps the fraction.
Formula
New shares = old shares × receive ÷ per. New price = old price × per ÷ receive.
Worked example
With the figures already in the form, shares after the split is 200.00.
Questions
Do I owe tax on a split?
Usually a split is not a taxable sale. This page does not give tax advice, and it does not change your cost basis per share except by the same ratio.
What happens to a limit order?
Brokers adjust open orders. This page only adjusts shares and price.