Will fractional shares earn more shares during stock split

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memcpy
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Will fractional shares earn more shares during stock split

Post by memcpy » Sat Aug 01, 2020 12:22 pm

For example, Apple announced 4-to-1 split. then I got this doubt, if someone owns a fractional shares of 0.75 shares of APPLE. Will he get more shares as part of stock split or Is it only for whole shares?

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grabiner
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Re: Will fractional shares earn more shares during stock split

Post by grabiner » Sat Aug 01, 2020 12:29 pm

Fractional shares will get the same multiplier. A stock split is a change in definition; if one old share is four billionths of a corporation (because the corporation had 250 million shares outstanding), then one new share is one billionth. Thus, if you had 0.75 old shares, you owned three billionths of the corporation, and your ownership is represented by three new shares.
Wiki David Grabiner

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