Learn / Glossary / Stock split
GlossaryWhat is Stock split?
A stock split cuts one share into several smaller shares, like cutting a pizza into more slices.
The simple explanation
In a split, a company gives each shareholder more shares and lowers the price per share so that the total value stays the same. Companies split to make shares look more affordable.
An example
In a 2 for 1 split, 1 share worth 200 dollars becomes 2 shares worth 100 dollars each.
Why it matters
A split does not change what a company is worth, but it can bring more attention and buyers.
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Educational information, not financial advice.