Stock Split

A stock split is a corporate action in which a company divides its existing shares into multiple new shares to increase the total number of shares outstanding. This process reduces the price per share without changing the overall market capitalization of the company. For example, in a 2-for-1 stock split, shareholders will receive an additional share for every share they own, resulting in twice as many shares at half the price. Stock splits are often implemented to make shares more affordable for investors and to improve liquidity in the market. The proportional value of the investment remains the same, as both the number of shares and the price per share adjust accordingly.