Betta Signals

Learn · Returns and data

Stock split

A stock split changes the number of shares and the per-share price by a stated ratio without, by itself, changing the holder's proportional ownership value.

By Betta Signals Research Desk · Reviewed October 24, 2026

Plain-English definition: A stock split changes the number of shares and the per-share price by a stated ratio without, by itself, changing the holder's proportional ownership value.[1]

How the term is used

In a forward split, the company issues additional shares in a stated ratio and the per-share market price adjusts proportionally, so the split itself does not change the holder's total position value.[1]

What to check before relying on it

Record the ratio and effective date from an authoritative source. Do not count the mechanical price change as a return, and do not apply an adjustment twice when a vendor series is already split-adjusted.

Example

In a 4-for-1 split, one $400 share becomes four shares near $100 each, before ordinary market movement.

Corporate actionAdjusted closePrice return

Research last reviewed: October 24, 2026. This definition is educational and does not evaluate a particular security.

Sources

  1. Investor.gov: Stock Split — the effect of a stock split on share count and per-share price. Accessed October 24, 2026.