Stock Split Explained | 2 Reasons for Stock Split

Have you ever heard of a corporate action event called a stock split? Maybe you wondered why companies do it and how it affects their money.

When a company goes public, they give out shares of stock to people who invest in their company. A stock split is when the company's bosses decide to make more shares available by multiplying the amount they have.

They decide how many new shares they want to make, and there are a few different ways they can do it. The most common are 2-for-1, 3-for-1, and 3-for-2 splits.

Check out this video to understand what a stock split is, and why companies decide to do it.

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