Stock market

Stock Split

When a company divides each share into several, such as 4 new shares for every 1, and the price of each share falls in the same proportion.

Why does it matter?

It changes the number of shares and the price of each one, but not the company's value or what each shareholder owns.

How do I read it?

A reverse split does the opposite and combines shares into fewer. Price charts are adjusted for splits, so a split doesn't look like a sudden drop.

Example

In 2024, NVIDIA split each share into 10. Someone with 1 share worth about $1,200 the day before ended up with 10 shares worth about $120 each: the same $1,200.