How Does a Stock Split Affect a Company’s Market Capitalization?
A stock split does not affect a company's market capitalization. It increases the number of outstanding shares and proportionally decreases the price per share.
Since market cap is calculated by multiplying price by the number of shares, the total value remains unchanged. It primarily aims to make the stock more accessible to retail investors.
Glossar
Stock Split
Action ⎊ A stock split is a corporate action where a company increases the number of its outstanding shares by dividing each existing share into multiple new shares, proportionally decreasing the price per share.
Reverse Stock Split
Mechanism ⎊ A reverse stock split, within cryptocurrency derivatives, represents a corporate action reducing the total number of outstanding shares, proportionally increasing earnings and price per share ⎊ analogous to adjustments in futures contract multipliers or options strike prices to maintain economic equivalence post-event.