What is Stock Split?

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Stock Split

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Increases Share

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Lowers Share Price

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Change in Company Value

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Improves Liquidity

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Psychological Appeal

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Split Ratio

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What is Stock Split?

Stock Split

A company action to divide existing shares into multiple new shares.

Increases Share

The total number of shares outstanding in the company goes up.

Lowers Share Price

Each individual share's price gets proportionally reduced.

Change in Company Value

The overall value of the company remains the same.

Improves Liquidity

More shares can be traded, potentially making the stock more attractive to investors.

Psychological Appeal

A lower share price can entice new investors who felt the pre-split price was too high.

Split Ratio

This means investors get two or three new shares for every share you own.

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