Stock Splits

A stock split occurs when a company’s board of directors issues additional shares of a stock to shareholders.

While the number of shares suddenly increases, the company’s market capitalization will remain the same, reducing the value of each individual share while maintaining the equity each investor holds.

In a 2-for-1 stock split, the number of shares owned by each investor is doubled, while their value is halved. These splits can improve trading liquidity and encourage investing by reducing the price of the shares and thereby improving their accessibility to more a broader base of investors.

Thus, stock splits are a useful way for companies to influence their place in the market. Listed below are publicly disclosed stock splits.