# Stock Split

*Saving & Investing — Finicade finance glossary*

A stock split divides existing shares into more shares at a proportionally lower price — a 2-for-1 split turns one $600 share into two $300 shares. Nothing about the company changes: same market cap, same ownership share, same value. Splits are cosmetic, aimed at accessibility and optics, and fractional shares have largely removed even that rationale. A reverse split runs the other way and is often a sign of a share price low enough to threaten a listing.

**Also known as:** share split, reverse stock split, 2-for-1 split

**Related terms:** [Stock (Equity)](https://finicade.com/glossary/stock), [Market Capitalization](https://finicade.com/glossary/market-capitalization), [Fractional Shares](https://finicade.com/glossary/fractional-shares), [EPS (Earnings Per Share)](https://finicade.com/glossary/eps)

Source: https://finicade.com/glossary/stock-split