Stock Split

A stock split is when a company divides its existing shares into multiple new shares, reducing the price per share while keeping your total ownership stake the same. You'll see this announced in company news and stock charts, and it matters because it affects the share price you see quoted—though it doesn't change what your investment is actually worth. For example, if you own 100 shares of TechCorp at $300 each and they announce a 3-for-1 split, you'd end up with 300 shares at $100 each. Companies typically split stocks to make shares more affordable for everyday investors and to boost trading activity, even though mathematically nothing fundamental about the business has changed.