What is a stock split, and does it change the value of my shares?

A stock split increases the number of shares you own while proportionally lowering the price of each, so your total value doesn't change at all. In a 2-for-1 split, 10 shares worth $200 each become 20 shares worth $100 each – still $2,000. Companies usually split to make a high-priced share feel more accessible to small investors, not because anything fundamental improved. A reverse split does the opposite, combining shares to raise the price (often to meet exchange listing requirements), which can be a red flag worth investigating. Splits have no direct tax consequence; your cost basis simply spreads across the new share count. With fractional-share investing now widespread, splits matter less than they used to, since you can buy a sliver of a high-priced stock anyway. Bottom line: a split is a cosmetic change to the share count, not a windfall or a loss.