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A forward split is when a company decides to divide their existing shares into multiple shares. A common split ratio would be for instance 2-for-1 which would double the number of shares in the company. When applying forward splits in backoffice the Split Ratio must be an rational number so that and Split Ratio > 1.

A reverse split is when a company decides to reduce their existing shares into fewer shares.  A common split ratio would be for instance 1-for-2 which would half the number of shares in the company. When applying reverse splits in backoffice the Split Ratio must be an rational number so that and 0 < Split Ratio < 1.