Please feel welcome to Contact Us if you would like to execute a share split on your share register. Whilst it's possible to set up your own share split, the Orchestra team can help out to make this quick and easy.
What is a share split?
A share split increases the number of shares in a company by issuing more shares to current shareholders.
Share splits are done by a pre-defined split ratio. A 1:2 share split would be a doubling of the total balance of shares. A 1:10 share split would increase the total balance of shares by ten times.
After a share split the share price will be reduced as the number of shares has increased.
How does a share split affect shareholdings?
A share split increases the size of shareholdings in a company.
Here is a share split example:
A company increases its total balance of shares by ten times by doing a 1:10 share split.
- Total balance of shares before the split = 10,000
- Total balance of shares after the split = 100,000
If Shareholder A has 356 shares before the split then they will have 3,560 shares after the split. Shareholder A will be issued 3,204 shares by the company to increase their shareholding from 356 to 3,560 shares (the percentage of the company the shareholder owns remains unchanged).
How do I enter a share split on my share register?
1. Create a new funding round.
2. Issue shares to each shareholder.