Social Protection

Explainer: What is a stock split?

what is stock split

Stock splits can be done by companies for liquidity reasons. Image: Unsplash/ Austin Distel

Nick Routley
Creative Director & Writer, Visual Capitalist
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The real world of the financial markets, driven by macro trends and animal spirits, is more complex than items in a shop window.
There are four reasons why a company might do a stock split. Image: Visual Capitalist

The total volume of the cheese is still worth the same amount, it’s only the portion size that changed.
More people can afford the smaller shares, therefore opening up the market. Image: Visual Capitalist

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Related topics:
Social ProtectionSustainable Finance and InvestmentDevelopment Finance
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