Stock split calculator
Your shares, cost per share and price after a forward or reverse split.
More shares at a lower price each.
You receive 4 new shares for every 1 old share.
Shares after the split
- New cost per share
- $125.00
- New stock price
- $200.00
- Value before
- $80,000.00
- Value after
- $80,000.00
How it was worked out
Ratio: 4:1 (forward)
Shares after = shares before x 4
100 shares x 4 = 400 shares
How a stock split works
A stock split changes how many shares you hold and the price of each one by the same ratio. Your total value and your share of the company stay the same.
New shares = Shares x New / Old
An example
You own 100 shares bought at $500, and the stock is at $800. After a 4:1 split you own 400 shares at $200, and your cost per share is $125. The holding is worth $80,000 before and after.
Questions
What is a stock split?
A company divides its existing shares into more shares. In a 4:1 forward split you get 4 shares for each 1 you own, each worth a quarter of the old price, so the total value stays the same. Companies often do this to make each share cheaper to buy.
What is a reverse stock split?
It combines shares into fewer shares. In a 1:10 reverse split, every 10 shares become 1 share worth 10 times the price. Companies often do this to lift the share price, for example to meet an exchange's minimum.
How do I calculate my new cost basis after a split?
Divide your cost per share by the split ratio. In a 4:1 split, $100 a share becomes $25. In a 1:10 reverse split, $5 a share becomes $50.
Does a stock split change the value of my investment?
No. It changes the number of shares and the price per share, not your total value or your share of the company.
Do I owe taxes on a stock split?
In the U.S., a split generally is not a taxable event, because your total value does not change. You adjust your cost per share and pay tax when you sell. Cash paid for fractional shares in a reverse split can be taxable.
What happens to fractional shares in a reverse split?
You may keep the fraction or receive cash for it, depending on your broker. In a 1:10 reverse split, 15 shares become 1.5 shares: 1 whole share plus 0.5 kept or paid in cash.
Is a reverse stock split bad?
The split itself changes nothing about the business, but it is often read as a warning sign because struggling companies use it to stay above an exchange's minimum price.
Why did NVIDIA do a 10-for-1 stock split?
NVIDIA split 10-for-1 in June 2024 when its shares traded above $1,000. The split brought the price to around $120, which made a whole share easier to buy.
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For education only, not financial advice. Results depend on the numbers you enter.