FTB-C000117 / Financial concept

Stock Split

A stock split increases the number of shares per holder while proportionally changing the per-share basis without intentionally creating value.

Also known asforward stock splitshare split

Foundation 7 linked topicsPublished

Definitions

In plain terms

In a four-for-one split, one old share becomes four new shares and the comparable per-share price is divided by four.

Technical

Processing requires split ratio, affected security, record and effective dates, fractional treatment, price and share factors, trading basis, source, and correction version.

Scope

A split changes units and does not by itself produce an economic investment gain.

Examples

  • A governed calculation records stock split with its exact basis, effective time, source, and units.

Common misconceptions

  • Stock Split does not have one universal treatment without the applicable methodology, event terms, and data context.

Concept relationships

Broader concepts

Related

Contrasts with

Required by

Where this concept is used

Tutorials planned

These catalogued topics use this concept, but their complete build has not shipped yet.

  • D02-F01-A01 Primary
  • D02-F01-A02 Primary
  • D02-F01-A04 Important
  • D02-F01-A05 Important
  • D02-F02-A03 Important
  • D03-F01-A04 Important
  • D03-F02-A01 Important

Evidence and governance

  1. Corporate Actions by Public Companies: What You Should Know Financial Industry Regulatory Authority · official platform documentation

    Supports: preferred label, short definition, technical definition

    Limits: General education does not define every event field, tax result, exchange rule, data-provider adjustment, or index treatment.

  2. Fintech Builder Glossary Definition Contract The Fintech Builder · internal governed contract

    Supports: variant distinction

    Limits: Defines governed platform behavior rather than claiming these policies are universally prescribed by external McClellan methodology.

Reviewed by
Last reviewed
2026-07-27
Next review
2027-07-27
Record status
published
Written by

Fintech engineer building market-data and financial systems, and the author of every article, glossary record, and reference implementation on The Fintech Builder.