do stocks still split? 2026 guide

Do Stocks Still Split?

Short answer: yes — do stocks still split? Companies still perform stock splits across global markets. Splits remain a common corporate action used to change per-share price and share counts without altering total market capitalization. In 2023–2024 there was a clear uptick in high-profile forward splits from large-cap issuers, and exchanges and financial sites kept active split calendars. For investors, splits matter for accessibility (retail affordability), liquidity and trading behavior, and as a potential signal from management.

This article explains what stock splits are, how they work (forward and reverse), important dates and settlement mechanics, historical trends including the 2020s resurgence, investor implications (tax, cost basis, dividends), how to find split information, notable recent examples, pros and cons, regulatory considerations, and common investor questions. Throughout, the focus is on equities; this is not about crypto token events.

Note: The phrase do stocks still split appears throughout this guide to help you find the core topic and to answer it in practical terms.

Definition and Basic Mechanics

A stock split is a corporate action that increases or decreases the number of a company’s outstanding shares by issuing more (or fewer) shares to existing shareholders in a predetermined ratio while keeping the company’s total market capitalization essentially unchanged.

• When a company performs a forward (regular) split, it issues additional shares to current shareholders in proportion to their existing holdings and reduces the per-share price by the same factor. Ownership percentages remain the same; only share counts and per-share price change.
• When a company performs a reverse split, it consolidates existing shares into fewer shares to raise the per-share price. Again, market capitalization should remain unchanged immediately after the split, but reverse splits can carry signaling meaning.

Accounting and record keeping adjust share counts, per-share cost basis, and historical prices are split-adjusted in charts and fund records.

Forward (regular) splits

Forward splits are the more commonly discussed type when investors ask "do stocks still split?" Typical forward ratios include 2-for-1, 3-for-1, 4-for-1, 5-for-1, 10-for-1, and in some notable cases much larger ratios (e.g., 50-for-1). In a 2-for-1 split, each shareholder receives one extra share for each share owned; a 10-for-1 split multiplies share counts by ten. After the split:

• Share count increases by the split multiple (e.g., 2x, 10x).
• Price per share decreases proportionally (roughly 1/2, 1/10 respectively).
• Total market capitalization remains (theoretically) the same at the moment of the split.
• Ownership percentage for each holder does not change.

Companies choose forward splits to lower nominal per-share prices, making shares appear more "affordable" to smaller retail investors and enabling more granular employee equity grants.

Reverse splits

Reverse splits (sometimes called stock consolidations) combine multiple shares into a single share — e.g., 1-for-10 or 1-for-20. The purpose is usually to raise the per-share price. Common motivations include:

• Meet or regain compliance with exchange listing minimums (exchanges may require a minimum bid price).
• Improve market perception when a very low stock price signals distress.
• Reduce the number of outstanding shares to change capital structure metrics.

Mechanically, a 1-for-10 reverse split grants one new share for every ten old shares; the per-share price multiplies by 10, and the overall market value stays approximately the same. Reverse splits can signal potential trouble, because firms with depressed share prices sometimes use reverse splits to avoid delisting or to attempt to attract different buyer segments. However, a reverse split by itself does not solve underlying business problems.

Key dates and settlement mechanics

Stock splits follow a calendar similar to dividends and other corporate actions. Key dates and what they mean:

• Announcement date: the day the company publicly announces the split ratio and timetable. This is when investors first learn of the corporate action.
• Record date: determines who is eligible for the split if the company requires registration; typically record/ownership is handled through brokerage records.
• Ex-split / effective date (trading-on-split date): the first trading day when the new share count and adjusted price are effective on exchanges. Trading systems update the per-share price and quantity on this date.
• Settlement mechanics: brokerages adjust share counts in customer accounts, and cost basis per share is adjusted proportionally (e.g., cost basis per share is divided by 10 after a 10-for-1 forward split). When fractional shares arise, brokerages handle them per their policies — most modern brokerages issue fractional shares or cash out fractional remainders.

Brokerage operations and final shareholder registers are updated after the effective date. Investors should watch brokerage notifications and the company press release for exact timing.

Historical Trends and Recent Resurgence

If you ask "do stocks still split?" the answer should include a historical perspective: stock splits were very common in the 1990s and in the tech boom as companies sought to keep nominal prices accessible. Split activity declined after the Global Financial Crisis and over the 2010s as trading patterns, brokerage offerings and institutional buying behavior evolved.

However, the early-to-mid 2020s saw renewed and noticeable activity in forward splits among large-cap growth names. As of June 14, 2024, CNBC reported a renewed interest in splits and discussed companies that were splitting or could split, driven by lofty share prices and management interest in improving retail accessibility. Morningstar and Motley Fool maintained active split calendars tracking announced and upcoming splits, and Yahoo Finance continued publishing a splits calendar for investors.

Notable examples often cited in news coverage around 2023–2024 include broad household or large-cap names that either announced or completed splits — examples raised in industry reporting include Walmart, Nvidia, Chipotle, and Broadcom. These events drew attention because they combined size, public visibility and management statements that splits were intended to broaden the shareholder base and improve trading liquidity.

Market participants, financial press and data vendors frequently publish split calendars to help investors track announced effective dates and historical splits. For up-to-date calendars, refer to financial news split calendars and company press releases.

Why Companies Split Their Stock

Companies split shares for several overlapping reasons. When answering "do stocks still split?" investors should understand the corporate motivations:

• Accessibility / retail affordability: A lower nominal share price can make a stock feel more within reach to small retail investors, even if the company’s market cap is large.
• Liquidity and trading activity: A lower per-share price can widen the pool of potential buyers and increase the number of tradable shares at common retail order sizes, sometimes increasing volume and liquidity.
• Employee equity grants and plans: Splits create more shares to grant to employees, making option grants and restricted stock units more granular and psychologically simpler.
• Positive PR and signaling: Announcing a split can be a form of positive messaging — management may signal confidence in future prospects by splitting after a sustained run-up in price.
• Capital structure / listing compliance: Reverse splits are used to raise per-share price and comply with exchange listing rules or to alter outstanding share counts.

Journalists and analysts often cite these motivations in reporting. For example, coverage in CNBC and Motley Fool highlighted accessibility and liquidity as central reasons for the 2023–2024 round of splits.

Do Stock Splits Affect Value or Performance?

From a theoretical economics perspective, a stock split is value-neutral: it does not change the company’s assets, liabilities, business fundamentals or total market capitalization at the moment it takes effect. A split merely divides the equity into more (or fewer) pieces.

Empirical evidence shows that while splits are value-neutral mechanically, they can have market effects:

• Trading volume and liquidity often increase after forward splits. This can reduce bid-ask spreads and attract more small-dollar investors.
• Short- to medium-term price moves after splits are mixed in academic and practitioner studies. Some studies and industry notes (including commentary in Morningstar and select research memos) find modest positive abnormal returns in windows around split announcements and the effective date; other studies show the effects dissipate over longer horizons.
• Signaling: a forward split often accompanies positive managerial language or follows strong performance; in that sense a split can be correlated with a continuation of strong performance, but correlation is not causation.

Analysts (including research notes referenced in media coverage) commonly report increased investor interest around high-profile splits. Still, investors should not view a split itself as a reason to assume improved long-term fundamentals.

The Role of Fractional Shares and Institutional Ownership

Two structural market changes have influenced the practical need for splits and companies’ decisions about whether to split:

1. Fractional shares: Many retail brokerages now support fractional-share trading, allowing investors to buy portions of expensive stocks by dollar amount rather than whole shares. This reduces the practical necessity of splits to enable small-dollar investors to own part of a company.

2. Institutional ownership and dollar-based buying: Large institutions and index funds often buy by dollar amount (not by share count). For those buyers, per-share price is largely irrelevant. High institutional ownership therefore reduces one traditional reason for splitting.

Because of these changes, some companies have paused routine splits even as prices rose. But splits can still make sense for public relations, employee compensation structures, and retail market-making dynamics — so the presence of fractional shares and institutional buyers does not fully eliminate split activity.

Investor Implications and Practical Effects

If you wonder “do stocks still split?” and what it means for your account, here are practical points:

• Account adjustments: After a forward split, your brokerage will increase your share count and adjust the per-share cost basis downward proportionally (e.g., in a 5-for-1 split your share count multiplies by five and cost basis per share divides by five). Reverse splits reduce share counts and increase per-share cost basis proportionally.
• Taxation: Stock splits are generally not taxable events in most jurisdictions because you have not realized cash or recognized gain/loss merely by changing share count. Cost basis allocation must be adjusted, and brokers publish adjusted cost basis for tax reporting. (As with all tax questions, consult a tax professional for personal advice.)
• Dividends: Dividend payments are adjusted per-share after a split. A forward split reduces dividend per share proportionally; a reverse split increases dividend per share proportionally if the company maintains the same total payout.
• Mutual funds / ETFs: Fund managers and fund accounting systems adjust holdings and report split-adjusted NAVs and per-share details.
• Fractional-share handling: Some brokerages issue fractional shares to reflect exact proportional entitlements, while others may provide a cash payment for fractional remainders depending on policy.

Sources such as Investopedia, Hartford Funds and CIBC provide investor-facing guidance on these mechanics.

How to Find and Track Stock Splits

To keep track of upcoming and historical splits, use multiple primary sources and aggregator tools:

• Company press releases and SEC filings (primary source for ratio and effective dates).
• Exchange notices and corporate actions feeds from exchanges (for official record dates and adjustments).
• Financial news outlets and split calendars — for example, Yahoo Finance maintains a splits calendar and The Motley Fool publishes upcoming splits lists. Major business outlets like CNBC and Morningstar report on notable split announcements and provide context.
• Brokerage notifications: your brokerage will notify you of any splits for securities you hold and will reflect the changes in your account.
• Data vendors and financial platforms (watch split calendars and corporate actions pages).

When tracking splits, confirm the announcement date, record/effective date, ratio and the broker’s handling of fractional shares.

If you prefer to trade or monitor market activity, consider using Bitget's market tools (for spot trading and market data) and your brokerage’s corporate actions page. For investors focused on crypto-linked equities or tokenized assets, use Bitget Wallet for Web3 interactions when relevant.

Notable Recent Examples (case studies)

Below are concise case notes for several high-profile splits that attracted media attention in the 2023–2024 period. Where available, the company reason and immediate market reaction are noted. Dates below are reported dates from media coverage.

• Nvidia (reported in 2024 coverage): Nvidia’s split was widely covered in business press as part of the broader narrative that high-performing tech firms were splitting to increase retail accessibility. As of mid-2024, outlets including CNBC discussed Nvidia among the set of high-profile names that had pursued forward splits. (Source coverage: CNBC; see References.)

• Chipotle (reported in 2024 coverage): Chipotle’s announced split drew attention because of a large forward split ratio reported in business outlets and investor calendars; coverage highlighted management’s stated aim to broaden the shareholder base. (Source coverage: Morningstar, Motley Fool.)

• Broadcom (reported in 2024 coverage): Broadcom’s forward split was featured in news calendars and discussed in analyst notes as an example of established large-cap companies using splits after strong multi-year price gains. Market commentary referenced liquidity and accessibility goals. (Source coverage: CNBC, Morningstar.)

• Walmart (reported in 2023–2024 coverage): Walmart’s split was reported in business press as part of the wave of legacy companies considering splits; reporting noted long-term shareholders and employee compensation as motivating factors. (Source coverage: CNBC, Yahoo Finance.)

Immediate market reactions to announced splits have been mixed but often include a short-term increase in media attention and trading volume around the ex-split date. Investors should consult the company press release and reliable financial calendars for the exact split ratios and effective dates.

Pros and Cons of Stock Splits (for companies and investors)

Pros:

• Improved accessibility for retail investors and greater psychological affordability.
• Potentially increased liquidity and trading volume post-split.
• Easier and more granular employee equity grants.
• Positive public relations and a visible signal of management confidence.

Cons / limits:

• Administrative costs and operational handling for corporate actions and brokerages.
• Cosmetic effect: a split does not change business fundamentals.
• Fractional-share capabilities at brokerages reduce the necessity of splits for retail access.
• Reverse split stigma: reverse splits can be interpreted as a sign of distress and do not fix business problems.

In short, splits can help in specific market and corporate contexts but are not a substitute for improving underlying business performance.

Regulatory, Accounting and Tax Considerations

• Tax: Stock splits are generally non-taxable events in most jurisdictions; cost basis per share is adjusted proportionally. Tax reporting requires correct cost-basis allocation — brokerages typically report adjusted basis.
• Accounting and reporting: Historical price series shown on charts and in fund records are usually split-adjusted to allow apples-to-apples comparisons. Financial statements do not record a split as revenue; rather, the share count and par value adjustments are reflected in equity account notes.
• Exchange listing rules: Exchanges often require a minimum bid price to remain listed (for example, $1.00 rules are common on some exchanges). Companies trading below those thresholds may resort to reverse splits to meet listing standards and avoid delisting. As reported in market press, firms that receive notices for low share price have sometimes used reverse splits as a cure. For instance, as of January 16, 2026, CryptoBriefing reported that Canaan Inc. received a Nasdaq notice after its ADS price traded below $1.00 for 30 days; the company was exploring options including a possible reverse split to regain compliance. Such compliance-driven reverse splits are procedural remedies but do not address business fundamentals.

Always consult official filings (SEC or exchange notices) for authoritative compliance and regulatory details.

Common Questions (FAQs)

Q: Are splits taxable?

A: No — in most jurisdictions a stock split is not a taxable event. Your total cost basis is the same, but the per-share cost basis is adjusted. Check with a tax professional for your personal situation.

Q: Do splits change my ownership percentage?

A: No — after a forward or reverse split, your ownership percentage in the company remains the same (ignoring rounding effects and fractional-share cash-outs).

Q: Should I buy before or after a split?

A: A split by itself does not change a company’s intrinsic value. Some investors buy ahead of splits anticipating increased attention or short-term momentum; others prefer to base decisions on fundamentals. This guide is informational and not investment advice.

Q: Does a split mean the company is a good investment?

A: Not necessarily. Splits are corporate actions addressing share price and liquidity, not business performance. Evaluate fundamentals, competitive position and financials separately.

Q: How do brokerages handle fractional shares from splits?

A: Policies vary. Many brokerages now issue fractional shares to reflect exact holdings. Some pay cash for fractional remainders. Check your broker’s corporate action policy.

Conclusion and Next Steps

Yes — do stocks still split? They do. Splits remain a live corporate-tool: forward splits are used to improve retail accessibility and liquidity and to facilitate equity compensation; reverse splits are used primarily for listing compliance or to raise per-share price. While a split is mechanically value-neutral, it can influence trading volume, liquidity and short-term market behavior, and it can serve as a managerial signal.

For investors: treat splits as corporate mechanics with potential short-term market implications, but do not consider a split alone as an endorsement of long-term fundamentals. Track splits via company press releases, exchange notices and split calendars on financial news platforms, and watch your brokerage communications for account-level effects. If you actively trade or monitor markets, Bitget’s market data tools can help you follow price action and corporate actions while your brokerage handles the custody and tax reporting details.

Explore Bitget market tools and corporate-action notices to stay informed about splits and other events — and always consult primary filings for the authoritative record.

References and Further Reading

• "Stock Splits Calendar - Yahoo Finance" — Yahoo Finance (splits calendar). (Reference date varies by calendar entry.)
• "Upcoming Stock Splits in 2026" — The Motley Fool (calendar and explanation). (Motley Fool coverage, 2026 calendar context.)
• "Stock splits are back in fashion. Here's why, and which companies could be next" — CNBC (June 14, 2024). As of June 14, 2024, CNBC reported an uptick in split activity and discussed drivers for the trend.
• "Stock splits are all the rage with Nvidia the latest — how to know which ones to buy or avoid" — CNBC (May 31, 2024). As of May 31, 2024, CNBC discussed high-profile tech splits and investor considerations.
• "Do Stock Splits Really Matter?" — Morningstar (July 16, 2024). Morningstar’s coverage of the economics and empirical evidence around splits.
• "What a Stock Split Is, Why Companies Do It, and How It Works" — Investopedia (overview and mechanics). (Investopedia provides investor-facing mechanics and tax guidance.)
• "Understanding Stock Splits" — CIBC Investor's Edge (investor-facing explanation). (CIBC explains settlement, fractional handling and investor impacts.)
• "10 Things You Should Know About Stock Splits" — Hartford Funds (practical investor guidance). (Hartford Funds covers tax and cost-basis adjustments.)
• Company press releases and SEC filings for individual split announcements (used per case study). Check the issuing company’s investor relations page and the SEC EDGAR database for the authoritative text of announcements.
• As of January 16, 2026, CryptoBriefing reported that Canaan Inc. received a Nasdaq notice regarding minimum bid price non-compliance and that a reverse split could be considered as part of remedial options. (CryptoBriefing; reported January 16, 2026.)

This article is informational and does not constitute investment advice. For tax or investment decisions consult a qualified professional. For trading and market data, consider Bitget's tools and your brokerage's corporate action notices.