You received one additional share after the split, but the price per share dropped to $50. Stock splits If you own shares in a company that declares a stock split, your cost basis is spread across your new and old shares of that company. Calculadora De Divisin Inversa De Acciones, Calculateur De Fractionnement D'actions Inverses. Table of contents What is Earnings Per Share (EPS)? Stock Split Calculator - Dividend Screen In theory, the impact of reverse splits on a companys valuation should be neutral, as the total equity value and relative ownership remain fixed despite the change in share price. Companies may also decide to split its stock to increase its liquidity. A reverse split equals one for ten. Share Price After the Stock Split is calculated using the formula given below. For instance, the share price of Alphabet (NASDAQ: GOOGL) as of the latest closing date (3/2/2022) was roughly $2,695 per share. At this time, the board makes four announcements: Get 30 Days of MarketBeat All Access Free, Sign in to your free account to enjoy these benefits. Cost Basis - Stock Splits A stock split happens when a company increases its shares in order to boost liquidity of a stock. Real-time analyst ratings, insider transactions, earnings data, and more. [BREAKING] New "Living Missile" to Replace Nuclear Missiles. When a company splits its stock, it increases the number of shares outstanding and decreases the price per share. As a result, even though you have twice as many shares, each share is only worth half as much, so when it comes to your net worth, the split is a wash. Simply divide the number of shares you own by the split ratio and multiply the pre-split share price by the same amount. Once a stock split has occurred, the range of investors that can potentially purchase stocks in the company and become shareholders expands, resulting in greater liquidity (i.e. Why are Penny Stocks Performing Reverse Splits? Reverse Stock Split Calculator | New Stock Price Calculator A reverse split converts each outstanding share into a partial share of stock relative to the announced ratio. The results can be starkly different between owning a stock through a stock split and purchasing the stock after it splits. As of July 1, 2022, each Alphabet shareholder will be given 19 more shares for each share already owned, which will be transferred on July 15 shortly afterward, its shares begin trading at the split-adjusted price on the 18th. A stock split is an event similar to when a company issues a dividend.