✂️ Stock Split Calculator
Compute your new adjusted share count, post-split share price, and adjusted cost basis for any forward or reverse stock split ratio.
Post-Split Position
Why Companies Split Stocks
Forward stock splits make shares more psychologically accessible and liquid for retail investors without altering underlying market capitalization or company fundamentals. When a company executes a 2-for-1 split, you receive two shares for each one you owned, while each share trades at half the previous price.
Frequently asked questions
What is a forward stock split?
In a forward stock split (such as 2-for-1 or 3-for-1), the company increases the number of outstanding shares while lowering the price per share proportionally. Your total dollar equity value remains identical.
What is a reverse stock split?
In a reverse split (such as 1-for-5 or 1-for-10), existing shares are consolidated into fewer shares with a proportionally higher price per share, often to maintain exchange minimum listing requirements.
Does a stock split trigger a taxable event?
Generally, stock splits are non-taxable events for equity holders because total invested capital and overall percentage ownership of the firm do not change. Your cost basis per share adjusts automatically.
How does a stock split affect my cost basis?
Your total dollar cost basis remains constant, but your per-share cost basis divides by the split ratio (e.g. halved in a 2-for-1 split), preserving accurate capital gains calculation when you sell.