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A transaction in which a company increases the number of shares outstanding. For example, in a two-for-one stock split, the company doubles the number of shares outstanding and the stock price is halved, but the company’s value is unaffected.

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The CFA Institute Investment Foundations Program covers the essentials of finance, ethics, and investment roles, providing a clear understanding of the global investment industry.


1. A transaction in which a company increases the number of shares outstanding. For example, in a two-for-one stock split, the company doubles the number of shares outstanding and the stock price is halved, but the company’s value is unaffected.





 
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