Stock Split

Dividing existing shares into more shares at a lower price each.

A stock split increases the share count while proportionally lowering the price, leaving total value and ownership unchanged. A 2-for-1 split doubles shares and halves the price. Companies do it to keep shares affordable and improve liquidity, not to change fundamentals.

After a 4-for-1 stock split, each share was cheaper, though investors owned four times as many.