Stock Split is a corporate action that increases the number of outstanding shares by dividing each share into multiple shares (e.g., 2-for-1), which reduces the per-share price proportionally while generally leaving total equity value unchanged absent market effects. In startups, a Stock Split often occurs as part of a recapitalization or before an IPO to adjust share price optics, and Stock Split execution requires board (and sometimes stockholder) approval and charter updates.
Ryan RobertsStartup 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.
