What is the meaning of share split?

There are actually 2 types of share splits.

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The first type is when a company wants to lower the stock price or increase liquidity. Maybe the stock price is too high and this stops alot of traders or investors from being able to buy.

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So, the company will declare a stock split, example, 2 for 1 stock split. Meaning every current share will become 2 shares. This effectively doubles the outstanding shares and also lowers the stock price accordingly.

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Another type of share split, less common is a reverse share split. To create the reverse effect, reduce the outstanding shares and increase the share price.

It is when a company increases its outstanding number of shares. However, the share price will be decreased accordingly.

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Overall, the total number of shares held will increase while the total value of shares held remain the same.

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It is a strategy to improve liquidity and make the share look "more affordable".

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Hope this clarifies.

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Pascal