Splitting one share into several to lower the price
A split divides existing shares so there are more of them. Split one into two and the count doubles while the price halves in theory. The company is worth the same, so a holder's stake is worth the same too. What changes is the minimum ticket, which drops and makes the stock easier for individuals to buy.
Hold 100 shares at $6,000 ($600,000) through a 3-for-1 split and you hold 300 shares at $2,000 — still $600,000.
For learning, not investment advice. Decisions are your own.
StockFit · TrueNorthLabs Inc.