100 shares, 2-for-1 split
- Shares held before the split
- 100
- Cost basis per share
- 50
- Share price before the split
- 120
- Split ratios, oldest first
- 2 × 1
Result Shares after the split: 200
Cost basis per share after: 25.0000
Total cost basis (unchanged): 5,000.00
Combined split ratio: 2
Fractional share left over: 0
Adjusted share price: 60.0000
- Combined ratio = 2-for-1 = 2
- Shares after = 100 × 2 = 200
- Cost per share after = 50.00 ÷ 2 = 25.0000
- Total cost basis stays 5,000.00
- Price after = 120.00 ÷ 2 = 60.0000
The holding doubles to 200 shares while the $5,000 basis is spread over twice as many shares, $25 each.