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 approval of a split, as well as three key dates. The record date is mostly an accounting concept, and there will also be a date when the new shares will be received (usually after the market closes), as well as when trading on a split-adjusted basis will begin (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

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 Mar 12, 2026 at 3:33 PM EST | Fact-checked by Frank Bass

Key Points

Stock splits increase share numbers but don't alter a company's fundamental value.
Forward splits are common and signal company growth; reverse splits may indicate issues.
Retail interest rises post-split, potentially increasing a stock's accessibility and liquidity.

A stock split refers to when a company divides each of its existing shares into a different number of shares. 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. A stock split lowers share prices but doesn't change a business's fundamental value or the total value of the shares owned by shareholders.

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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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Stock splits in a growing business often attract significant attention from retail investors. For example, after Nvidia's (NVDA +2.20%) 2024 stock split was announced, its stock price surged higher.

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Retail Investor

Individuals who trade and invest in financial markets with personal funds, distinct from institutional investors.

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Employee Stock Ownership Plan (ESOP)

An employee stock ownership plan (ESOP) is a benefit structure that pays workers in company shares.

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 +0.72%) as an example. In its 2022 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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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.

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@MattFrankelCFP

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 January 2026 $58 calls on Tractor Supply. The Motley Fool has a disclosure policy.