What do "reverse" and "forward" indicate in a stock split?

A reverse stock split means a company reduces its outstanding share count by combining several shares into one. A forward split, which is typically what the term "stock split" refers to, increases the share count by effectively dividing each existing share into several shares.

Is it good if my stock splits?

Not necessarily. Sometimes, market interest in a stock increases when a stock split is announced. However, any stock price gains are temporary if the business's financial results don't increase to support the stock price speculation.

Do stocks rise after a split?

Sometimes. Due to increased retail investor interest in a lower per-share price, often driven by the misconception that a stock split makes a company "cheaper," a stock may rise after a split. But any gains tend to be temporary unless the business generates higher corresponding financial results.

How do you know when a stock is going to split?

There's no way to tell for sure whether a company's management team and board of directors will announce a stock split. However, strong business performance and a track record of stock splits can increase the likelihood of an upcoming stock split announcement.

How do I track the record date and split date for upcoming stock splits?

The company completing a stock split will issue a press release announcing the split's approval, along with three key dates. The record date is primarily an accounting concept, and there will also be a date when the new shares are received (usually after the market closes) and when trading on a split-adjusted basis begins (the following morning).

What is a split ratio?

A split ratio tells you how many shares of stock you'll have after a split is completed. For example, a 3-for-1 split ratio means that if you own 100 shares of a stock now, you'll own 300 shares after the split is completed.

Upcoming Stock Splits in 2026: Complete Calendar & Schedule

Learn about upcoming stocks that will split this year, and what a stock split means to you as an investor.

By Matthew Frankel, CFP – Updated Sep 7, 2026 at 8:24 AM EST | Fact-checked by Frank Bass

Key Points

Nvidia's stock price rose after its 2024 stock split announcement.
Booking Holdings executed a 25-for-1 stock split to maintain retail investor access.
2026 saw 37 traditional stock splits, fewer than the 76 in 2024.

A stock split refers to when a company divides each of its existing shares into a different number of shares. Announcements of a stock split can generate excitement among investors, even though the move doesn't change the overall value of investors' holdings or the company's own fundamentals. When a company decides to split its stock, it can generate significant excitement.

For example, in a stock split, you might get three shares for every one that you already own. A stock split occurs when a company increases its number of shares outstanding by dividing existing shares, multiplying the share count, and reducing the share price to compensate.

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Stock splits in a growing business often attract significant attention from retail investors. For example, after Nvidia's (NVDA +0.84%) 2024 stock split was announced, its stock price surged higher.

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An infographic defining and explaining what stock splits are and how they work. — Image source: The Motley Fool.

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How a stock split works

When a company decides to split its stock, it typically issues a press release that outlines the key details of the split. For example, this will include the ratio of the stock split (i.e., how many shares you'll receive for each one you own), as well as the effective date of the split, which is when the stock will begin trading on a split-adjusted basis.

On the effective date of a stock split, the share price will be proportionately reduced, and the additional shares will be credited to investors' accounts. If the company completes a 10-for-1 stock split, and you owned 20 shares worth $1000 each prior to the split, you would now own 200 shares worth $100 each.

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Why do companies do stock splits?

Stock splits (as well as reverse stock splits) typically don't change a company's fundamental value. They also don't change an investor's ownership stake in the company. For example, if you own a slice that is one-quarter of the whole pie, cutting it into smaller pieces doesn't change the fact that you still have one-quarter of the total pie.

Since a stock split doesn't really fundamentally change anything, why would a business choose to do one? Often, it is related to attracting new investors. A lower per-share price attracts many individual investors to a popular company.

Additionally, many publicly traded companies give employees an ownership stake in the business by granting them stock-based compensation. A lower share price can help a business manage the benefits issued to its employees.

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Also, many companies repurchase shares as part of a return on investment to existing shareholders. A lower share price can help a company manage the purchases and returns to investors.

Take Amazon (AMZN -0.15%) as an example. In its stock split filing, the company stated, "The stock split would give our employees more flexibility in how they manage their equity in Amazon and make the share price more accessible for people looking to invest in the company."

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Should you buy a stock because of an upcoming split?

If you are a long-term investor who plans to own shares of a company for at least a few years, an upcoming stock split is no reason to buy an ownership stake in a business. A company generally has good reasons for initiating a split, but it doesn't change the fundamental value for shareholders.

Rather, look for companies benefiting from long-term secular growth trends, growing faster than their peers, and with healthy profit margins and balance sheets.

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How does a stock split affect your portfolio?

For the most part, the only changes you'll notice when a stock splits are that the share price will fall and the number of shares you own will climb.

There are a couple of other ways a stock split could impact you, especially if you're an options trader. For example, you generally need 100 shares of stock to write a covered call on a position. If you own 50 shares of a stock that splits two-for-one, writing call options now becomes a possibility.

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Upcoming stock splits FAQ

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About the Author

Matt Frankel, CFP®, is a contributing Motley Fool stock market analyst specializing in the real estate and financial sectors. Prior to The Motley Fool, Matt taught high school and college mathematics. He holds a bachelor’s degree in physics from the University of South Carolina, a master’s degree in mathematics from Nova Southeastern University, and a graduate certificate in financial planning from Florida State University. He won a SABEW award for coverage of the 2017 Tax Cuts and Jobs Act. He is also regularly interviewed by Cheddar, Globe St, The National Desk, and other TV networks and publications for his real estate, financial, stock market, and investing expertise.

TMFMattFrankel

@MattFrankelUSC

Matt Frankel, CFP has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Booking Holdings, Netflix, Nvidia, ServiceNow, and Tractor Supply. The Motley Fool recommends Fair Isaac and Palo Alto Networks and recommends the following options: short April 2026 $55 calls on Tractor Supply. The Motley Fool has a disclosure policy.

Upcoming Stock Splits in 2026

Learn about upcoming stocks that will split this year, and what a stock split means to you as an investor.

Key Points

How a stock split works

Why do companies do stock splits?

Should you buy a stock because of an upcoming split?

How does a stock split affect your portfolio?

Upcoming stock splits FAQ

About the Author

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Upcoming stock splits FAQ

What do "reverse" and "forward" indicate in a stock split?

Is it good if my stock splits?

Do stocks rise after a split?

How do you know when a stock is going to split?

How do I track the record date and split date for upcoming stock splits?

What is a split ratio?

How a stock split works

Why do companies do stock splits?

Should you buy a stock because of an upcoming split?

How does a stock split affect your portfolio?

Upcoming and recent stock splits

Possible 2026 stock splits