[DARISC]

If a company announces a 2-for-1 stock split it will double the number of shares outstanding. If a company had 1 million shares outstanding and announces a 2-for-1 split, it will issue 1 million new shares to its stockholders. After the split, the company will have 2 million shares outstanding, and each stockholder will have twice as many shares as he had before the split. Doubling the number of shares immediately cuts the value of each share in half. A stock worth $10 a share before the split will be worth $5 a share after the split. Companies may also choose odd-number splits, such as 3-for-2 or 5-for-4. Such splits will have similarly proportionate effects on an individual stock's value.