Plain-English definitions, reviewed by an independent investor
Stock Split
A stock split increases share count and cuts the price per share by the same ratio, leaving total value unchanged.
A stock split increases share count and cuts the price per share by the same ratio, leaving total value unchanged.
New Price = Old Price รท Split Ratio
Why it matters
It makes expensive shares feel affordable and can broaden ownership.
Common confusion
A split changes nothing about the business; the market sometimes cheers it anyway.
Frequently Asked Questions
Do I lose money in a split?
No. Your total value stays the same, just split across more shares.
Reverse split?
Fewer shares at a higher price, often to meet listing minimums; usually a warning sign.