Stock Split

A corporate action that increases the number of outstanding shares while proportionally decreasing the price per share, leaving the company's total market capitalization unchanged. A 4-for-1 split converts every share into four shares at one-quarter the price. Apple, Tesla, Amazon, and Google have all executed high-profile stock splits to make their shares more accessible to retail investors. Historically, stocks tend to outperform in the months following a split announcement, though the split itself is economically neutral.