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Share split

Share split

A share split means each share is divided into several shares, without changing the total value.

What is a split?

A split, or division of shares, means that each share in a limited company is divided into several shares. The number of shares increases while the share capital is unchanged, which lowers the quota value per share.

 

Why do a split?

A split can make the share easier to handle, for example ahead of a new share issue or to facilitate a transfer of shares. Owners' stake in the company is unaffected. The opposite is a reverse split. The decision is made by the general meeting and recorded as a share ledger event.

Record a share split
Henrik Kristensen, NVR
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Related terms

Reverse share split

A reverse split merges several shares into fewer, with a higher value per share.

Quota value

Quota value is a limited company's share capital divided by the number of shares.

Share capital

Share capital is the capital the shareholders contribute to a company in exchange for shares.

Share ledger events

Share ledger events are the changes to ownership and shares that are recorded in the share ledger.