How do I calculate the stock split?
It is important for investors to understand how to calculate stock splits as they can play an important role in the liquidity of a stock. The most common type of split is a 2-for-1 or 3-for-1, where each shareholder receives an additional share, for example, for every two shares they own. To calculate the new stock price after a split, one can use the following formula:
New Price = Original Price / Split Ratio. For example, if the original price of a stock is $20 and the split ratio is 2-for-1, the new price of the stock would be $10. Tools such as Sourcetable can be used to calculate stock splits.