Stocks Splitting: Meaning, Examples, Calendar & What Happens Next

Stocks splitting refers to a corporate action where a company increases the number of its outstanding shares by dividing existing shares, without changing the company’s overall market value. Investors often search for stock splits to understand how share prices change, what happens to their holdings, and whether upcoming stock splits create new opportunities.
For a broader market view, see our best stocks guide.

This guide explains stock split definitions, real-world examples, upcoming stock splits, stock split calendars, historical trends, risks, and how investors should evaluate splits.

Stock Split Definition

A stock split is when a company divides its existing shares into multiple new shares. While the number of shares increases, the total market capitalization remains the same. Investors often compare split stocks with long-term investment stocks.

For example, in a 1:2 stock split, every one share becomes two shares, and the share price is cut in half.

Stock Split: What Does It Mean for Investors?

When a stock split occurs, investors own more shares, but the value of their total investment does not change immediately. Stock splits are often used to make shares more affordable and increase liquidity, especially among growth stocks.

Stock Split: What Happens After a Split?

After a stock split:

• Share price adjusts proportionally
• Number of shares increases
• Liquidity often improves
• Market perception may turn positive

Stock Split History

Historically, stock splits have been common among fast-growing companies. Firms like Apple, Microsoft, and Amazon have executed multiple stock splits during periods of strong performance, similar to trends seen in AI-focused stocks.

While a stock split does not guarantee future returns, companies that split shares often do so after sustained growth and strong fundamentals.

Upcoming Stock Splits

Investors closely track upcoming stock splits to identify companies preparing to adjust their share structure. These events are typically announced weeks in advance and often overlap with lists of stocks under $10.

Stocks Splitting Soon

Stocks splitting soon are often large-cap companies whose share prices have risen significantly. Monitoring official announcements is essential before making investment decisions.

Stock Split Announcements

Companies announce stock splits through press releases and regulatory filings. Once announced, the stock price usually adjusts automatically on the effective date.

Stock Split Calendar

A stock split calendar helps investors track key dates, including:

• Announcement date
• Record date
• Ex-split date
• Effective split date

Stock Split Calendar 2025

Company	Split Ratio	Announcement Date	Effective Date
Example Corp	1:2	Jan 2025	Feb 2025

Stock Split Calculator

A stock split calculator helps investors calculate how many shares they will own after a split and the adjusted share price. Many investors use this alongside tools from the best stock market apps.

Formula:

New Shares = Old Shares × Split Ratio
New Price = Old Price ÷ Split Ratio

Famous Stock Split Examples

Stock Split Apple

Apple has executed multiple stock splits to maintain affordability and liquidity.

Stock Split Walmart (WMT)

Walmart’s stock split helped broaden retail investor participation.

Stock Split Costco

Costco has historically used stock splits during strong growth periods.

Stock Split Microsoft

Microsoft’s stock split history reflects long-term expansion and earnings growth.

Stock Split Netflix

Netflix split its stock during high-growth phases to improve market accessibility.

Stock Split Disadvantages

While stock splits can improve liquidity, they also come with risks:

• No impact on company fundamentals
• Short-term hype may fade
• Not all split stocks perform well afterward

Investors should evaluate business fundamentals, not just the split event, and compare with income-focused assets like dividend stocks or gold-related stocks.

How to Analyze Stocks Splitting

• Revenue and earnings growth
• Balance sheet strength
• Industry position
• Long-term business outlook

Frequently Asked Questions (FAQ)

Is stocks splitting good or bad?

Stock splitting is neutral by itself. Long-term performance depends on company fundamentals.

Do stock splits increase value?

No. Stock splits do not change market capitalization, but they can improve liquidity.

Should investors buy before a stock split?

Buying solely because of a split is risky. Always analyze the business first.

Are upcoming stock splits profitable?

Some stocks perform well after splits, but results vary widely.

Final Thoughts on Stocks Splitting

Stocks splitting is an important concept for investors to understand. While splits can make shares more accessible and improve liquidity, they do not replace solid fundamentals. Tracking upcoming stock splits, calendars, and announcements can help investors stay informed and make better decisions.