Stocks

Stock split

An increase in shares outstanding with a proportional reduction in price per share, leaving total equity value unchanged by the split itself.

Plain-English context

Put the definition to work.

ILLUSTRATIVE EXAMPLE

A 2-for-1 split turns ten $100 shares into twenty $50 shares mechanically, preserving $1,000 initial value before other market changes.

IMPORTANT DISTINCTION

The split changes units, not value by itself; dividends, new information and market reactions are separate effects.

Further reading and verification. Examples are hypothetical, not current quotes or recommendations. Product terms, tax treatment and market rules can change. Investor.gov — investing glossary

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