What Is Stock Split?
Definition and plain-English explanation of "Stock Split"

A stock split increases the number of a company's shares while proportionally lowering the price of each, leaving the total value unchanged. In a 2-for-1 split, one $200 share becomes two $100 shares. Splits make shares more affordable to retail investors. A reverse split does the opposite, consolidating shares to raise the price.
Related Terms
A stock (also called a share or equity) is a fractional ownership stake in a company. When you buy a...
The stock market is a collection of exchanges where buyers and sellers trade shares of publicly list...
A bull market is a period in which stock prices are rising or expected to rise — generally defined a...
A bear market is a period of declining stock prices, typically defined as a drop of 20% or more from...
Market Navigator Glossary — plain-English definitions of 93+ investing and crypto terms. All content is for educational purposes only and does not constitute financial advice.