Ask Stash

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.

Didn’t find your question?

Shoot us your question and our Stash experts will get back to you.

Submit a question