Stock Split
A corporate action that multiplies the share count and divides the share price by the same factor, leaving total market capitalization unchanged. A 2-for-1 split converts one $400 share into two $200 shares; a 4-for-1 converts one $400 share into four $100 shares. Splits do not create economic value -- ownership stake, dividend entitlement, and voting weight are all unchanged. The case for splits is psychological (a lower share price expands the pool of buyers who can afford an even lot) and mechanical for some index providers.
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Active Management · Active Share · AI Revenue · Anchoring Bias · Cost of Capital · Creation Unit
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