Finance
What is A stock split?
A stock split is when a company divides its existing shares into more shares, lowering the price of each without changing the company's total value. A 2-for-1 split, for example, doubles your shares but halves each one's price — often done to keep shares affordable.
See it, don’t just read it.
Watch a 2-minute lesson with voice + animation that explains a stock split.
Key things to understand
- 1A company splits each share into multiple shares.
- 2The price per share drops proportionally.
- 3Your total holding's value stays the same.
- 4It's often done to keep share prices accessible.
Frequently asked questions
- What is a stock split?
- When a company divides its shares into more, lower-priced shares without changing total value.
- Does a stock split make me richer?
- No — you own more shares at a proportionally lower price, so your total value is unchanged.
- Why do companies split their stock?
- Often to keep the share price affordable and accessible to more investors.