What is equity split, and what does equity split mean?

Updated on Financial 2024-06-08
22 answers
  1. Anonymous users2024-02-11

    A split is a method of issuance in which some shareholders receive new shares of the company without having to pay additional cash to the company.

    The difference between a limited liability company and a share **** leads to the peculiarity of the equity split. A limited liability company is a form of organization that has the dual attributes of fundraising and human cooperation. This peculiarity determines its difference from the stock ****.

    The number of shareholders of the share **** is small, and the restrictions on the transfer of shares are few.

    When dealing with shares, the number of shares can be shared directly, or they can be directly distributed according to the proportion of shareholdings. For a limited liability company, due to its closed nature and the upper and lower limits of the number of shareholders, the legal personality of the company, whether the number of shareholders meets the legal requirements, and the restrictions on the transfer of shareholders' capital contributions should be considered in the division of shares.

    This set of characteristics requires that when dividing the shares of a limited liability company, it is necessary to protect not only the civil rights of the spouses, but also the other shareholders and the personality of the legal person.

  2. Anonymous users2024-02-10

    A split is now a way for shareholders to receive a new issue of the company without having to pay additional cash to the company. The difference between a limited liability company and a share leads to the particularity of equity splitThe limited liability company is an organizational form with the dual attributes of fundraising and human cooperation, and this particularity determines that it is different from the share. The number of shareholders of the shares and the restrictions on the transfer of shares are small, and the amount of shares can be directly distributed when dealing with the shares of the shares, or they can be directly distributed according to the proportion of the number of shares.

    In the case of a limited liability company, due to its closed nature and the upper and lower limits on the number of shareholders, it is determined that the legal personality of the company, whether the number of shareholders complies with the law, and the restrictions on the transfer of capital contributions by shareholders should be considered when it comes to the division of equity. This series of characteristics requires that when dividing the equity of a limited liability company, it is necessary not only to protect the civil rights of the husband and wife, but also to take into account the other shareholders and the personality of the company.

  3. Anonymous users2024-02-09

    In the context of the market, equity is synonymous with equity, which is different from debt such as government bonds and bonds, and both indicate partial ownership of a company. In the industrial and commercial sector, equity represents the entire interest of the parties in the property of the industrial and commercial entity, with lenders and creditors having a "special interest" and the owner owning the "remainder". Restricted by the listing conditions of the domestic capital market, some enterprises choose to go overseas for listing and financing, and overseas listing and financing requires a large listing fee and to meet some equity dispersion work before listing, so an intermediary agency that helps enterprises to do decentralized work and early financing was born, that is, equity**.

  4. Anonymous users2024-02-08

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  5. Anonymous users2024-02-07

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  6. Anonymous users2024-02-06

    Hello classmates, I'm glad to answer for you!

    Split The parent company treats a minority stake (usually no more than 20%) in the subsidiary as an initial public offering (IPO)**. (Also known as partial stripping.) )

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  7. Anonymous users2024-02-05

    Hello classmates, I'm glad to answer for you!

    The parent company treats a minority stake in the subsidiary (usually no more than 20%) as an initial public offering (IPO)**. (Also known as partial stripping.) )

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  8. Anonymous users2024-02-04

    1. Splitting refers to splitting a larger denomination into several smaller denominations.

    Second, the function of ** is as follows:

    1. The depreciation will reduce the company's **per **price, reduce the amount of funds necessary to buy and sell, easily increase the turnover of the ** between investors, and can make more potential shareholders with limited financial strength become shareholders who hold shares. Therefore, the division can facilitate the circulation and trading of the company.

    2. The first score can convey the information of the company's good development prospects to investors, which helps to improve investors' confidence in the company.

    3. The first discount can prepare for the company's issuance of new shares. The company's **** is too high, which will make many potential investors unable to easily invest in the company's **. Before the issuance of new shares, the issuance of new shares can be promoted by using the division to reduce the number of shares.

    4. The first discount is conducive to the implementation of the company's merger and acquisition policy and increases the attractiveness of the target party.

    5. The improvement of liquidity and the increase in the number of shareholders brought about by the discount will increase the difficulty of the company's hostile takeover to a certain extent.

  9. Anonymous users2024-02-03

    For example, if a listed company has a total share capital of 100 shares, and now it gives 10 bonus shares for every 10 shares, its total share capital will be split into 200 shares.

  10. Anonymous users2024-02-02

    Hello classmates, I'm glad to answer for you!

    A carve-out is when a parent company takes a minority stake (usually no more than 20%) in a subsidiary as an initial public offering (IPO)**. (Also known as partial stripping.) )

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  11. Anonymous users2024-02-01

    Equity is first divided into two categories: capital equity and operation and management equity. First of all, the equity of these two parts is clearly determined, not from the perspective of people, but from the perspective of these two categories.

    Generally speaking, individual investment depends on the personal characteristics of the investor, and institutional investment has more of a set of value evaluation system, which has many evaluation methods. I'm just going to talk about how individual investors are treated. The most important thing for investors to invest in your team is generally the people, and the second is the project.

    Therefore, we should also first approach the issue of the proportion of shares invested from a human perspective. For example, if an investor has a particularly heavy desire to control, it is likely that you should not talk about holding, but instead turn your energy to how to increase the team's income through expansion; If the investor is particularly bold, you may be able to get a controlling stake. In a word, it is more about respecting the views of investors.

    If you really feel that it is not suitable, it seems that the investor you chose is wrong, and it should be you, not him. As for the operating equity part, once the overall proportion is set, it can be evaluated taking into account the responsibilities and abilities of each person in the team. There may be some contention in this area, and my suggestion is to set up some simple virtual equity performance evaluation system.

    In other words, in the process of starting a business, the shareholder's equity can be adjusted to a certain extent with the change of individual performance. This system is neutral, so the distribution ratio of management equity is also divided according to responsibilities and positions, rather than according to people. If you feel that you should also consider the stake from a creative perspective, then separate this aspect.

    Let the person who first came up with the idea get a certain amount of equity return. Therefore, the most basic thing about equity distribution is that there is no need to be embarrassed to talk about it, because if you don't talk about equity, various problems will inevitably occur in the entrepreneurial process. Let the equity not be divided according to the person, but according to the objective funds, responsibilities, positions, creativity and other angles, so as to avoid the problems caused by the random distribution of the head.

  12. Anonymous users2024-01-31

    1.**Spin-off is still a matter of the nineties, in order to expand the liquidity of **, but also to reduce the per share**, so that everyone can afford to buy, the ** shares are split, in fact, and the share is the same meaning, the only difference is that in the expression, the share is ten to give a few shares, the spin-off is 1 share split into several shares, and it has not been used for many years.

    2.The enterprise is spun off, and the original enterprise is redivided into several independent companies with no subordinate relationship with each other.

    For example, China Telecom was split into China Telecom and Unicom.

  13. Anonymous users2024-01-30

    Hello, spin-off refers to the company's independent listing of the business and assets of the subsidiaries of the original consolidated statements and the independent listing through the issuance of new ** or wholly-owned transfer. The opposite of this is mergers and acquisitions.

  14. Anonymous users2024-01-29

    **Stock split refers to the distribution of additional shares to each shareholder in proportion to their existing shareholdings. When a split occurs, the company "buys back" its outstanding shares and exchanges the original share for two or more shares. The split ratio can be 2:

    1 or higher, the face value or set value of the split will be reduced.

  15. Anonymous users2024-01-28

    It is to split the share capital, such as a share split into 10 shares, the number of shares will become 10 times the original, of course, the share price per share has also become the original 1 10, this is mainly to expand the share capital, conducive to the circulation of **, but also to the stock price has a certain boost.

  16. Anonymous users2024-01-27

    Hello, the so-called split is basically the same as the transfer of A shares. The original 1 share is split into more, and the corresponding stock price will also shrink. For example, if 10 is turned into 10, the original 1 share becomes 2 shares, and the stock price is half of the original after ex-rights.

  17. Anonymous users2024-01-26

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  18. Anonymous users2024-01-25

    It's like an ex-rights split.

  19. Anonymous users2024-01-24

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  20. Anonymous users2024-01-23

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  21. Anonymous users2024-01-22

    Stock split

    It means that when the company's stock price is too high, the company will usually divide it into two, two into three, or four into five, and so on. As a result, the total number of ** becomes larger, but the face value of the single sheet becomes smaller. Being split due to bullish means that the company will make a good profit in the future, and it will be bullish at that time.

    The **split in the United States is similar to the ex-rights of Taiwan stocks, and when it is good, the stock price may be ** on the day of the split**.

    Example 1: Ms. Chan owns 1,000 shares of The Boeing Company (BA)**, and when the company announces a 2:1** split, Ms. Chan's original 1,000 shares** will become 2,000 shares.

    1,000 x (2/1) = 2,000

    If the original price of 1 share** is $40, then the split price is:

    40 x (1/2) = $20

    Basically, the total number of ** is still the same. It is worth $40,000 (1,000 shares x $40) before splitting. After the split, its total value is still $40,000 (2,000 shares x $20).

    Example 2: Ms. Hung owns 400 shares of JNJ**, and when JnJ splits her ** into 5:4, Ms. Ang's original 400 shares** will become 500 shares.

    400 x (5/4) = 500

    If the original price of 1 share** is $50, then the price after the split is:

    50 x (4/5) = $40

    Basically, the total number of ** is still the same. It is worth $20,000 (400 shares x $50) before splitting. After the split, its total value is still $20,000 (500 shares x $40).

    Reverse split:

    The effect of reverse split is to increase the price of **, which is exactly the opposite of ** split. In a reverse split, the investor can get less**.

    Example 1: Mrs. Ke owns 600 shares of Hewlett-Packard (HWP) Technology Company**, and when HP splits her ** into 1:2, Mrs. Ke's original 600 shares** will become 300 shares.

    600 x (1/2) = 300

    If the original price of 1 share** is $50, then the price after the reverse split is:

    50 x (2/1) = $100

    Basically, the total number of ** is still the same. It is worth $30,000 (600 shares x $50) before splitting. After the split, it is still worth $30,000 (300 shares x $100).

  22. Anonymous users2024-01-21

    Hello classmates, I'm glad to answer for you!

    Stock spilt is also known as stock spilt or stock split, and split is a more technical term. Splitting refers to splitting a larger denomination into several smaller denominations. The split will not have any impact on the company's capital structure, and will generally only increase the total number of outstanding shares, the balance of the shareholders' equity accounts (share capital, capital reserve, retained earnings) in the balance sheet will remain unchanged, and the total amount of shareholders' equity will remain unchanged.

    Gordon wishes you a happy life!

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