Investing Dictionary
Basics

What is Stock Split?

When a company divides its shares into more, cheaper pieces

Full Explanation

If a stock is at $1000 and the company does a 10-for-1 split, you get 10 shares worth $100 each. You still own the same total value — it's like breaking a $100 bill into ten $10 bills.

Real-World Example

Apple did a 4-for-1 stock split in 2020 to make shares more affordable.

Pro Tip

Splits don't change the company's value — just the number of shares.

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