Stock Splits

A stock split is a corporate action where a company increases the number of outstanding shares by issuing more shares to existing shareholders. Companies can do this to make their shares more affordable and accessible to a wider range of investors, and is seen as a sign of a company’s confidence in its future prospects indicating that the company expects its stock price to continue to rise.

The number of shares issued in a stock split is usually in a specific ratio, such as 2-for-1 or 3-for-1, which means that for every share that a shareholder owns, they will receive an additional share (or shares). This changes the number of shares that a shareholder owns and the price of each individual share.

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