Definition
An event where a company increases the number of its shares while reducing the price per share, without changing its overall value.
What to consider
- Understand how a split increases your share count without changing total value.
- Consider its impact on liquidity and market perception.
- Monitor post-split performance for further investment insight.
Real world scenarios
- When the company announced a stock split, Andrew’s shares doubled in number, though the overall value of his investment remained the same.
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