Stock split definition

Stock split is when a company lowers the price per share and proportionally increases number of shares. Stock split does not change total value of stock or proportional value of each shareholder.

For example, say you own 100 shares of ABCD at 30.
After 2-for-1 Stock split you will own 200 shares at 15.
After 3-for-2 Stock split you will own 150 shares at 20.

Companies do Stock splits to make their stock appear more "affordable". Some investors do not like to buy stock when price goes up to $100/share or higher.

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