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Stock Split
Market Mechanics
A stock split divides each existing share into several shares.
The share count rises and the per-share price falls by the same ratio; the company's market value and the total value of your holding do not change. Charts and historical earnings per share are adjusted backward for the split.
Example
- 01Before the Split10 shares × $400
- 024-for-1 SplitEach share becomes four
- 03After the Split40 shares × $100
$4,000
Total Value, Before and After
In a 4-for-1 split, 10 shares at $400 become 40 shares at $100; the total is still $4,000.
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