When a company has its stock split, it means that the total number of outstanding shares is increased while the price per share is decreased. This usually occurs when the company wants to make its stock more affordable to a larger group of investors. For example, in a 2-for-1 stock split, investors will receive an additional share for every share they already own, effectively cutting the share price in half. Despite the decrease in share price after a stock split, the market capitalization of the company remains the same. This means that the overall value of the company and each individual shareholder's ownership stake stays constant. The split does not change the underlying fundamentals of the company, but it can make the stock more attractive to retail investors who may have been intimidated by a higher share price. Overall, a stock split is a relatively common corporate action that can provide benefits to both the company and its investors. It is important for investors to understand the reasons behind a stock split and how it may impact their investment strategy.