An exchange of one share of an old issue of stock for a multiple number of shares of a new issue of stock with reduced par value is known as a:

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A stock split is when a company divides its existing shares into multiple shares to boost the liquidity of the shares. Although the number of shares outstanding increases by a specific multiple, the total dollar value of the shares remains the same compared to pre-split amounts, because the split does not add real value. The most common splits are 2-for-1 or 3-for-1, which means a stockholder gets two or three shares for every share held.

An Exchange of One Share of an Old Issue of Stock