Stock split.

In plain English

A stock split is when a company increases its share count by dividing each share into several, cutting the price per share by the same factor. In a 2-for-1 split, every share becomes two worth half as much, so your total value does not change at all. Companies split to keep the share price in a range that feels approachable, not because the business got more or less valuable. A reverse split does the opposite, combining shares into fewer, higher-priced ones.

01Why it matters

A split can make headlines and move a stock short-term, but it changes nothing about what you own, so it is not a reason to buy or sell.

02The math, step by step

You own 10 shares worth 200 dollars each, or 2,000 dollars. After a 2-for-1 split you own 20 shares worth 100 dollars each, still 2,000 dollars.

03What this is NOT