Forward Stock Split

A Forward Stock Split is a corporate action that increases the number of outstanding shares by splitting each existing share into multiple shares (e.g., 2-for-1), reducing the per-share price proportionally while generally leaving overall equity value unchanged absent market effects. In startups and public companies, a Forward Stock Split is often used to improve share price optics and trading liquidity, and it typically requires board approval (and sometimes stockholder approval) and corresponding charter or listing compliance steps.

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Ryan Roberts Startup Lawyer
Ryan Roberts is a startup lawyer with more than two decades of experience advising on venture financings and M&A transactions totaling more than $1 billion. He is the author of the Amazon bestselling startup law book Acceleration.