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Stock Split - Issuer Side

Alin Muresan's Profile

Can anyone clarify if there is a formal restriction for Issuer to chose a ratio without remainder for a stock-split ?
For example, is the issuer allowed to do perform the following exercise:
Starting point: 100 shares at 10 USD each giving 1000 USD in total ,
Stock split at a ratio of 1:3.
Result: 300 shares at 3.33 USD giving 999 USD total. Is this allowed, how to register the missing 1 USD?
Many Thanks


Topic Expert
Wayne Spivak
Title: President & CFO
LinkedIn Profile
(President & CFO, |

Many times they issue the fraction as cash to the investor(s).


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