what is Stock split?

A stock split is a corporate action in which a company increases the number of its outstanding shares by issuing more shares to existing shareholders. The value of the company's stock is divided into a larger number of shares, but the total market capitalization of the company remains the same. For example, if a company declares a 2-for-1 stock split, it means that each shareholder will receive an additional share for every share they own.

Stock splits are usually done to make the stock more accessible to small investors, as the price of the stock is reduced after the split. For example, if a company has a stock price of $200 per share and declares a 2-for-1 split, the price of the stock will be halved to $100 per share after the split. However, it is important to note that stock splits do not affect the value of an investor's holdings in the company, as the number of shares owned is increased but the value of each share is reduced by an equal amount.