Stock market basics
Stock split
Definition
A split that increases the number of shares and lowers the price per share, such as 2-for-1 or 3-for-1.
Example
Suppose you own 50 shares of a $240 stock, a position worth $12,000. After a 3-for-1 split you hold 150 shares and the price adjusts to $80, so the position is still worth $12,000. The split changes how the value is sliced, not the value itself, and the company’s market cap stays the same.
Hypothetical numbers, for illustration only.
Also defined in
UpTickFlow is our product. These guides are education, not financial advice. Trading involves a substantial risk of loss.