What happens to my shares if a stock splits?
If a stock you own splits, don’t worry! This is nothing to worry about.
Imagine that you have a $100 bill. You want to break it down, so you get change in the form of two $50 bills. You haven’t lost any money, but you now have more bills than you had before—twice as many, to be exact.
If you own a stock that splits, the total value of your shares always remains the same. The only thing that changes is the number of shares on the market. For example, if a company you invest in issues a 2-for-1 split, you’d receive one extra share for each share that you already own. So if you own 1 share of a company worth $100, you’d then own 2 shares worth $50 each, for a total of $100.
Here’s another example. Let’s say you have $200 in stock that cost $400 per share. If that share splits into two shares of $200, you will still have $200 invested in that company’s stock— the only difference being that you would now own a whole share of that stock.
Still have questions? We have answers! You can reach out to Support here.
Related questions View all Invest
Q. What are the fees for this account?
Nothing in addition to your monthly subscription fee! If you’re a Stash Growth or Stash+ customer, you automatically have access to Smart Portfolio and there are no additional fees for having one. DISCLOSURES A “Smart Portfolio” is a Discretionary Managed account whereby Stash has full authority to manage.…
Q. How is this Smart Portfolio recommended for me?
The Smart Portfolio mix is selected to be best-suited to your risk profile. Staying invested is really important, and we know that you are more likely to stay the course if your portfolio offers you a comfortable balance of growth and volatility (or the most comfortable balance of reward versus risk over the long term).…
Q. Am I allowed to withdraw and deposit funds?
Absolutely! We encourage you to deposit funds on a regular basis, so that you can build a strong portfolio. In fact, that philosophy is a pillar of The Stash Way®. You can also withdraw whenever you want.…
Didn’t find your question?
Tell us what you’re looking for, and we’ll search for resources that could help.Ask your question
Fiduciary 101: Why it’s Our Job to be Your Advocate
It’s a big word that means a lot when it comes to handling your money. It defines a relationship built on trust and duty.
Debt and Equity: What Every Smart Investor Needs to Know
You can invest in debt & in equity, but do you really know what that means? We break down the jargon.