Stock Split Calculator
From the original shares, original price and the split ratio, compute the shares and price per share after a split or reverse split.
Input Data
Results
At a glance:A stock split changes the share count and price but not the value. New shares = original shares × split ratio; new price = original price ÷ split ratio, where split ratio = new shares ÷ old shares. A ratio above 1 is a split (more, cheaper shares); below 1 is a reverse split.
Formula
New shares = original shares × split ratio.
New price = original price ÷ split ratio.
How to Use
- Enter the original shares and price.
- Enter the split ratio (new ÷ old shares).
- Read the new shares and new price.
FAQ
Does a stock split make my shares worth more?
No. A split just cuts the same pie into more slices — your share count rises but the per-share price falls proportionally, so the total value is unchanged. On a 3-for-1 split, 1,000 shares at HK$60 (HK$60,000) becomes 3,000 shares at HK$20 (still HK$60,000). Market cap, earnings and assets are untouched. 'Cheaper price' is an illusion; do not mistake it for a bargain.
Why do companies split their stock?
Mainly because the price has risen so high that a board lot costs too much, shutting out small investors and hurting liquidity. Splitting lowers the per-share price to make it more accessible and tradable, sometimes read as management confidence. A reverse split (fewer, higher-priced shares) is the opposite — often used to lift a sluggish penny-stock price or meet an exchange's minimum-price rule.
What happens to odd lots (fractional shares) after a split?
If your share count is not divisible, you may get an odd lot that trades less liquidly at a wider spread; sometimes the company pays cash in lieu. The exact arrangement follows the company announcement and exchange rules. This calculator shows only the theoretical share and price conversion.
If a split changes no value, does it affect shareholders at all?
Mathematically no, but in practice there are effects. First, liquidity improves — lower per-board-lot cost draws more participants and usually lifts volume and narrows spreads. Second, a psychological signal: splits often follow a strong price rise and may be read as confidence, sometimes lifting sentiment short term (not value). A reverse split often signals weakness or a delisting-avoidance motive and warrants caution. After a split, your cost basis and per-share dividend adjust by the ratio, but total cost and total dividend are unchanged; watch for odd lots and adjusted historical charts.
How do my cost basis, dividend and market cap change after a split?
Per-share figures scale by the ratio while totals stay put. Cost basis: total cost is unchanged, so per-share cost divides by the ratio (HK$60×1,000 → HK$20×3,000). Dividend: if the payout policy is unchanged, per-share dividend divides by the ratio but total dividend is the same (more shares × lower per-share). Market cap: shares × ratio × price ÷ ratio cancels out, so cap is unchanged. EPS also divides by the ratio while P/E stays the same. In short, every 'per-share' number shrinks but your aggregate holding value and the company's total value are untouched.
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References
Content review: Calculatorism Finance Team. Results are for reference only; please refer to the relevant authorities for the official figures.