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.

Illustrative example. The amounts here are hypothetical, chosen to show how the math works, not real quoted rates or figures.

03What this is NOT