Split, or division of shares, is an operation carried out by a joint-stock company which involves in reducing the nominal value of shares while maintaining the same amount of share capital.

As a result of the split, the market price also decreases accordingly and the number of shares in circulation increases, while the company's market capitalization remains unchanged.

The share split ratio is, for example, 1:2 (two "new" shares are issued for one "old" share). Usually, the proportions are "rounded", i.e. 1:5 or 1:10, but they can also occur as follows: 1:67 or 1:31.

In the case of a split, the number of shares is adjusted on individual Trading Accounts on the day of the share split.

🚩 Fractional Shares do not participate in share splits on the terms specified by the issuer, but are settled in cash by closing a given position at the last available price, i.e. the closing price from the day preceding the day of the corporate event. In such a situation, XTB will transfer the appropriate value of the funds thus obtained to the Client’s Trading Account.