Split

In finance, a split refers to dividing a company's existing shares into multiple smaller shares, or consolidating multiple shares into a larger one. A stock split increases the number of shares available, making them more affordable for investors, without changing the company's overall value. Conversely, a reverse split reduces the number of shares, often to meet listing requirements. The total worth of your investment remains the same immediately after a split; it simply changes the number of shares you hold and their price per share. This process helps improve marketability or meet exchange rules.