New to this? Read the plain English guide first.
See what a stock split does to your shares and price.
A split changes the number of shares and the price per share, but not the total value of your holding. A 3-for-1 split gives you three times the shares at one third of the price. A reverse split does the opposite.
New shares = old shares x split number. New price = old price divided by split number. Total value stays the same.
Want the full story with a worked example? Read the Stock Split guide, or see all of our free calculators. For learning only, not advice.