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 it affects your portfolio if you own the stock. Companies do this to make shares more affordable for everyday investors and to boost trading activity. For example, if TechCorp does a 2-for-1 split and you own 100 shares worth $300 each, you'd end up with 200 shares worth $150 each—your total value stays at $30,000. It's a cosmetic change that doesn't fundamentally alter what you own, but it can influence how easily you can buy or sell.