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TeachMeFinance.com - explain stock split stock split -- see split. split -- the division of the outstanding shares of stock in a corporation into a larger number of shares. For example, a three-for-one split would result in each shareholder receiving three shares for every old share held. The split merely increases the number of shares issued, and does not immediately alter the total capital of the company, nor each stockholder's proportionate equity in the company. About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2005 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.