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.
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.