A stock split is a corporate action in which a company increases the number of its outstanding shares by issuing additional shares to current shareholders, while maintaining the same overall value of the company. For example, in a 2-for-1 stock split, shareholders would receive two shares for every one share they currently own, effectively halving the price of each share. The purpose of a stock split is to make the stock more accessible to individual investors by lowering the price per share, as well as to increase liquidity in the market. A stock split does not affect the company’s market capitalization or the ownership percentage of individual shareholders.
