Split Ratio Calculation Print
Modified on: Sun, 23 Oct, 2016 at 9:12 AM
The split ratio is an inverse of the number of shares that a holder of the stock would have after the split divided by the number of shares that the holder had before.
For example:Split ratio of .5 = 2 for 1 split
To determine a new stock price using the split ratio here is an example calculation:
Split Ratio = .5Stock Price = $40New Stock Price = $40/(1/split ratio)
New Stock Price = $20
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