Push Out

AAA

DEFINITION of 'Push Out'

One of two ways to effect a stock split. In a push out, new share certificates are forwarded to existing shareholders, without it being necessary for them to surrender their previous share certificates. The shares on existing and new certificates have the same new value. The push out method is less cumbersome and more efficient than the alternative call-in method, which effects a stock split by replacing existing share certificates held by shareholders with new share certificates.

INVESTOPEDIA EXPLAINS 'Push Out'

For example, if a company uses the push out method for the stock split, the holder of 500 shares in a company that has declared a 2-for-1 split will receive another share certificate for 500 shares. The 500 shares on both the old and new share certificates will have identical value.

RELATED TERMS
  1. Reverse Stock Split

    A corporate action in which a company reduces the total number ...
  2. Stock Split

    A corporate action in which a company divides its existing shares ...
  3. Reverse/Forward Stock Split

    A stock split strategy that includes the use of a reverse stock ...
  4. Stock Certificate

    The physical piece of paper representing ownership in a company. ...
  5. Split Adjusted

    A modification made to a security's price that takes into consideration ...
  6. Fractional Share

    A share of equity that is less than one full share. Fractional ...
Related Articles
  1. A stock split is a corporate action that increases the number of the corporation's outstanding shares by dividing each share, which in turn diminishes its price.
    Investing Basics

    Understanding Stock Splits

    We explain what they are, the thinking behind them as well as their results.
  2. Active Trading

    Don't Let Stock Prices Fool You

    Find out why a stock with a six-figure share price can still be a good value.
  3. Forex Education

    The Dangers Of Share Dilution

    Investors need to be aware of the existence of dilutive securities and how they can affect existing shareholders.
  4. Investing

    A Guide To Spotting A Reverse Merger

    This corporate action can be profitable for investors who know what to look for.
  5. Options & Futures

    I own options on a stock, and it's just announced a split. What happens to my options?

    When the underlying stock of your option splits or even begins issuing a stock dividend, the contract undergoes an adjustment that is often referred to as "being made whole," which means the ...
  6. Investing

    Does a stock split lead to the gapping up/down of the stock?

    If a company splits its stock, there will be no gapping of the stock due to the split itself. A stock split does not materially affect a company's value and will not lead to the wide changes ...
  7. Investing Basics

    Enterprise Resource Planning System: A How To

    An ERP system won’t transform poor management into good management, but the real-time business analytics can help make good management even better.
  8. Investing Basics

    How To Calculate Goodwill

    Goodwill is an intangible, but it is still possible to effectively calculate or estimate goodwill for a company.
  9. Investing Basics

    Using Appreciative Inquiry To Solve Management Problems

    In its purest form, appreciative inquiry is a powerful tool for shifting the focus of an organization to something much greater than its bottom line - although the eventual outcome will often ...
  10. Investing Basics

    The Basics Of Value Chain Analysis

    Value chain analysis establishes an action plan to understand and implement actvities that create values to a firm's clients, resulting in firm profits.

You May Also Like

Hot Definitions
  1. Commodity

    1. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often ...
  2. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  3. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  4. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  5. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  6. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
Trading Center