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A stock split or stock divide increases the number of shares in a company. A stock split causes a decrease of market price of individual shares, not causing a change of total market capitalization of the company. Stock dilution does not occur. A company may split its stock, for example, when the market price per share is so high that it becomes unwieldy when traded. For example, when the share price is very high it may deter small investors from buying the shares. What is a 5-4 stock split? What if I have only 2 shares? Answer Save. 5 Answers. Relevance. curtisports2. Lv 7. 2 years ago. You will now have 2.5 shares. If the company won't keep fractional shares on their books, they will send you a check for the value of the half-share and you'll still have two shares. 0 0 0. Login to reply the answers Post; Judy. Lv 7. 2 years ago. With 2 shared you'd get " In July 2015, Netflix stock split seven-for-one, meaning your ownership increased by seven shares for every share you owned before the split. Thus, your 20 shares became 140 shares overnight." YES, this is completely true!
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