Stock split
A stock split increases a company’s share count and lowers the price per share proportionally, without changing the total value of the company or your holding.
In a stock split, a company divides each existing share into several — a 4-for-1 split turns one $400 share into four $100 shares. The total value is unchanged: you own more shares at a lower price, and the company’s market cap is the same. A reverse split does the opposite, consolidating many low-priced shares into fewer higher-priced ones.
Splits are largely cosmetic. Companies do them to keep the share price in a range that feels accessible to retail buyers; reverse splits are often used to lift a price back above an exchange’s minimum listing requirement. Neither changes the underlying business or what your stake is worth.
stocks-llm shows the current split-adjusted price and market cap; it does not track split history as a dataset. This definition is educational only.
See more terms in the stocks-llm glossary.
Informational only — NOT financial advice. This is an educational definition, not a recommendation to buy or sell anything. Metrics on stocks-llm are delayed data and may be missing or stale. Always verify information independently and consult a qualified financial professional before making any investment decision.