Stock Split

A stock split increases the number of shares in a company while proportionally reducing the price per share, making the stock more accessible to smaller investors. The total market value of the shares remains the same; for example, a 2-for-1 split means each shareholder gets an additional share for each one they own, but the stock price is halved. This action often aims to boost liquidity and can signal company growth, although it doesn't change the underlying value of the company. After a split, while individual shares are less expensive, the overall equity of shareholders does not change in value.