# What is the different between 2 :1 split and 1:1 split

I don't understand what is the different between a 2 for 1 stock split and a 1 for 1 stock split. If you have 100 shares then get a 2 for 1 split you will have 200 shares. If you have 100 shares then get a 1 for 1 split won't you still have 200 shares (100 shares + 100 shares = 200.

There is no such thing as a "one for one" split. It's either N for 1, or 1 for N in a reverse split. And for either, N can't be 1.

Yes a 3:2 can happen, but I still read it as 1.5 for 1.

I'm guessing you're conflating `bonus share issuance` with `stock split`. That seems very common to me, from a quick search; there's even some issues of terminology between the US and Europe, I think - it seems some Europeans may use Bonus Shares to mean Stock Split, as opposed to the more common meaning in the US of Stock Dividend.

Sometimes a bonus share issuance is (incorrectly) called a stock split, like in this public announcement from STADA in 2004. It is a 1:1 bonus share issuance (meaning they issue one bonus share to everyone who has one share now), but it is in essence the same thing as a stock split (a 2:1 stock split, namely). They combined the 1:1 from bonus share with the wording 'split', causing the confusion.

Bonus share issuance, also known as a stock dividend, is covered well in this question/answer on this site, or from a search online. It has no obvious effect initially - both involve doubling shares out there and halving the price - but it has a substantially different treatment in terms of accounting, both to the company and to your tax accountant.

The 1 for 1 split could be the case where a company is being split into two parts. The new part may be spun off, or sold to another company.

Any time a company splits into two parts, the ratio of the resulting companies needs to be determined.

• When a company breaks into two pieces, do they ever use the wording 1 for 1? Jul 29 '15 at 22:35
• reddit.com/r/stocks/comments/34d85i/11_stock_split is one possibility, and this is another. The latter I ... don't understand at all what they're really doing.
– Joe
Jul 29 '15 at 23:08
• The second one looks exactly like a 2:1 split. If anyone can explain why it's not, I'd appreciate the education. Jul 29 '15 at 23:43
• I found an instance of "1:1 split" on Google referring to how to enter the Motorola Solutions spinoff in Quicken. Jargon for Quicken bound to its implementation, but it exists in the wild. qlc.intuit.com/questions/… Jul 30 '15 at 13:03