# 2 for 1 split

Guys, Please help me on the calculation of 2 for 1 split when calculation diluted EPS. eg., if the number of outstanding shares was 100,000 what is the value after the split. Also, is there any variations on this like 2:1 ? is both are same ? thanks …

Shareholders get 2 for every 1 share they own, so outstanding shares doubles.

Remember this will also affect treasury actions (repurchases) as well.

Hi All, I am confused on this subject as well but to a different level. Example made up(so numbers may not work): Suppose a company has this: Jan 1 - 100,000 shares outstanding. April 1 - 20,000 shares issued Oct 1 - Reverse split 3:2. Dec 31 - # outstanding? Also, Weighted Average?? according to me, outstanding would be: 80,000. and Weighted Average would be 105,000 am I right? Sorry…not trying to hijack the thread but I think it is a good follow up.

Weighted 100,000 +20,000*9/12=15,000 =115000*2/3=76,666 outstanding 120,000*2/3=80,000

Thanks guys. I noticed for price-weighted series example, they had a stock split 2 for 1 and after the split, the price was just half and adjusted the divior by -1. Befor share price was \$60 and after the split it is \$30. Can’t figure out how they go it. It is from cfai sample3.

post the Q

I also couldn’t figure out the explanation they gave for that last question…and I thought I knew what I was doing. I’m almost willing to bet this is an error on their part.

CFA-NoLife, I think you maybe doing this wrong. Of course I could be wrong too since I am confused. But, for the weighted, how come you just multiplied 20,000 by the 9/12. Why not the 100,000?