🔀 What Is a Stock Split? (Normal & Reverse)
Stock Literacy • Corporate Actions • Beginner Friendly
A stock split changes the number of shares a company has without affecting the total value of your investment 🔁. It simply makes shares more affordable and increases liquidity 💹.
Normal Stock Split ➗
Example: A 2-for-1 split - Your 1 share becomes 2 - Price is cut in half - Total value remains the same
Major companies like AAPL, TSLA, and AMZN have used splits to encourage more investors to join 🚀.
Reverse Stock Split 🔄
A reverse split combines shares. Example: 1-for-10 split - 10 shares become 1 - Price increases 10× - Often used by struggling companies ⚠️
Does a Stock Split Affect Value? 📦
No. Your total investment stays the same — only the share count and price change.
Splits don’t guarantee growth, but normal splits can attract more investors and boost sentiment 📈.
Educational & informational only — not financial advice.
Post a Comment