In a stock split a company gives shareholders more shares, each worth proportionally less.
The maths
In a two-for-one split, one share worth 1,000 becomes two shares worth about 500 each. The total is unchanged.
Why companies do it
A lower price per share can make it easier for small investors to buy whole shares.
What to watch instead
A split changes nothing about the business itself; profits and prospects still decide the value.
Series · Part 4 of 4Money Basics
Filed underBusiness
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