The stock split calculator shows how your shares and price change after any forward or reverse stock split. Stock splits don't change your investment's total value — they simply adjust the number of shares and the price per share proportionally.
How Stock Splits Work
A stock split divides existing shares into multiple shares (forward split) or consolidates shares (reverse split). Companies use forward splits to make shares more affordable to retail investors when prices get too high. Reverse splits are often used to boost share prices to meet exchange listing requirements.
Forward Split Example
Apple's 2020 4-for-1 split: if you owned 10 shares at $400 each ($4,000 total), after the split you owned 40 shares at $100 each — still worth $4,000. The split made Apple shares accessible to more investors without changing the company's value.
Reverse Split Example
A 1-for-10 reverse split: if you own 1,000 shares at $0.50 each ($500 total), after the split you own 100 shares at $5.00 each — still $500. Companies near NYSE/NASDAQ minimum price thresholds often do reverse splits to avoid delisting.
FAQ
Does a stock split change my investment value?
No. In a forward stock split, you receive more shares at a proportionally lower price. The total market value of your investment remains the same immediately after the split. For example, a 2:1 split doubles your shares but halves the price per share.
What is a reverse stock split?
A reverse stock split reduces your share count while increasing the price per share proportionally. A 1:4 reverse split means every 4 shares become 1 share at 4x the price. Companies do this to avoid delisting when share prices fall too low.
Do I owe taxes on a stock split?
Stock splits are not taxable events. The IRS does not consider receiving additional shares from a split as income. Your cost basis per share adjusts proportionally, but your total cost basis stays the same.
What does 3:2 stock split mean?
A 3:2 stock split means you receive 3 shares for every 2 you own. If you had 100 shares at $60 each, after the split you'd have 150 shares at $40 each. Total value stays at $6,000.