Stock Split

A stock split is when a company divides each existing share into multiple new shares, lowering the price per share while keeping your total ownership stake the same. You'll hear about splits in company news and earnings reports because they affect how a stock trades and can influence investor psychology. For example, if you own 100 shares of TechCorp trading at $300 each, a 3-for-1 split would give you 300 shares at $100 each—your $30,000 investment hasn't changed, but the lower price per share might make it feel more accessible to new investors. Splits don't change the company's actual value, just how that value is sliced up.