Stock split

increasing the number of shares by diving each share into several shares of lower value

Stock split refers to a corporate action that increases the number of shares in a public company. The price of the shares are adjusted such that the before and after market capitalization of the company remains the same and dilution does not occur. Options and warrants are included. Also known as a Stock Divide.
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Noun
1. an increase in the number of outstanding shares of a corporation without changing the shareholders' equity; "they announced a two-for-one split of the common stock"
(synonym) split, split up
(hypernym) increase, step-up

Occurs when a firm issues new shares of stock but in turn lowers the current market price of its stock to a level that is proportionate to pre-split prices. For example, if IBM trades at $100 before a 2-for-1 split, after the split it will trade at $50 and holders of the stock will have twice as many shares as they had before the split. See: split.