What does a 5 to 1 stock split mean?
What does a 5 to 1 stock split mean? A stock split is a corporate action in which a company divides its existing shares into multiple shares. For example, a stock split may be 2-for-1, 3-for-1, 5-for-1, 10-for-1, 100-for-1, etc. A 3-for-1 stock split means that for every one share held by an investor, there will now be three. How do you calculate a 5 to 1 stock split? Divide your per share basis by the number of new shares you received for each old share in the first stock split. For example, if your stock split five new shares...