How do I Figure the Percentage of a 5-4 Stock Split?
Corporations may issue a stock split. A stock split will give stockholders more shares of stock, while proportionately reducing the value of the stock. For example, if there is a 2-1 stock split of 100 shares of stock worth $100 per share, then after the split there will be 200 shares of stock worth $50 per share. Notice the total value of all the stock combined did not change. The total outstanding value of all shares of stock is still worth $10,000. The percentage helps you calculate how many shares of stock you will receive depending on the stock split ratio. To figure out a 5-4 stock split just follow these steps:
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Instructions
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A 5-4 stock split means you will receive five shares of stock for every four shares that you currently own. Write this out as a division problem, so 5 divided by 4 equals 1.25.
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Multiply the calculation in Step 2 by 100 to convert the amount to a percentage. In the example, 1.25 times 100 equals 125 percent.
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Mulitple the number of shares you currently own by 125%. For example, if you currently own 60 shares of stock then after a 5-4 stock split you will own 75 shares of stock.
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