Stock splits divide existing shares, increasing their number while reducing the price per share. But what impact do they have on ownership and value?

A stock split reduces the price per share proportionally. For example, a 2-for-1 split will halve the share price.

After a stock split, existing shareholders receive additional shares. For a 2-for-1 split, each shareholder receives an extra share for each share they own.

Although the number of shares and price per share change, the total value of an investor's holdings remains the same after a stock split.

Lower share prices resulting from splits can make stocks appear more affordable, potentially attracting new investors to the market.

Stock splits increase the number of shares available for trading, enhancing liquidity in the market and potentially improving stock trading volumes.

Companies implement stock splits to adjust share prices, increase liquidity, and potentially broaden their shareholder base.

Stock splits are strategic corporate actions that aim to optimize share prices and attract investors while maintaining overall value.