What is a Stock Split? (and how does it work?)

When you own stock in a company you own a portion of the company itself. When that company makes more money and the stock price goes up, you can make money from buying and selling the stock. But… what happens when the company decides to do a stock split? And why would a company even want to split their stock in the first place?

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Strange Stuff

[hishamfouad]

Brief, informative and right to the point... Thanks

[alexlim]

Nice, another finance/investing topic video! 👏👏Keep it up!😁👍

[richerite]

A reverse stock split should just be called stock join

[SprayNpreyT]

I seen it when a company gets stuck in the stock market, and they split to artificially boost themselves.

[Constitution]

I was thinking about dividends the entire time. So if a share's dividend is typically $0.50, then a stock split would yield $1?

[LawatheMEid]

So i buy a stock with 100$ .. after splitting i have a 50$ stock .. so i lose 50%? .. what protect me then?
Thanks

[TamiCastillo-xh]

I seen it when a company gets stuck in the stock market, and they split to artificially boost themselves.