Stock Splits
More shares, same pie — cosmetic to value, sometimes meaningful as a signal and for liquidity.
Corporate EventsBeginner 3 min read· Lesson 10 of 11 in Stock Market Basics
Mechanics
A 4-for-1 split turns each $400 share into four $100 shares; your stake's value is unchanged, and every per-share figure (EPS, dividend) divides by 4. Nothing fundamental changed — beware anyone selling a split as 'getting shares cheap'.
Why do it
Lower per-share prices improve option-contract accessibility and psychological approachability, and splits usually FOLLOW strong runs — the (mild) historical outperformance after splits is mostly that companies split from strength.