Issue Forward Split

An issue forward split, commonly known as a stock split, occurs when a company increases the number of its outstanding shares by issuing more shares to existing shareholders at a predetermined ratio. This process reduces the price per share while keeping the company’s total market capitalization the same. Forward splits are often used to make shares more affordable to retail investors and increase market liquidity.

Example

A company announces a 2-for-1 stock split, where shareholders receive one additional share for each share they already own, reducing the stock price by half while doubling the share count.