Stock Split Calculations

Stock splits adjust the number of shares outstanding and the share price without changing the total value of an investor’s position. This video walks through how stock splits work and shows you how to calculate changes to share count and price.

You’ll learn:

  • The difference between forward and reverse stock splits

  • How to calculate new share quantity and share price

  • How stock splits affect total investment value (they don’t!)

  • Common ratios like 2-for-1, 3-for-2, and 1-for-5

  • How stock split questions are presented on exams

📘 Related Exams: SIE, Series 7, Series 65, Series 66
🧠 Skill Level: Beginner
📈 Topics Covered: Stock splits, reverse splits, share adjustments, market price effects, exam math

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