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What is a stock split?

A stock split is a corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares. Although the number of shares outstanding increases by a specific multiple, the total value of the shares remains the same compared to pre-split amounts, because the split does not add any real value. 


Refer to this chapter on Varsity for a detailed explanation. You can refer to this article to know how long the process takes.