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What is Stock Split
A stock split is when a company breaks one expensive share into several cheaper shares.
You still own the same total value, but now have more shares at a lower price per share.
The total value doesn’t change just because of the split. It's like cutting cake pieces — the cake doesn't grow.
Real-World Examples:
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Apple did a 4-for-1 split in 2020. If you had 1 Apple share at $400, after the split, you got 4 shares at $100 each.
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Tesla did a 5-for-1 split in 2020. If you had 1 Tesla share at $1500, after the split, you got 5 shares at $300 each.
Why do companies do a stock split?
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To make shares more affordable for small investors.
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To make the stock look more attractive (more people can afford it, more buying happens).
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