How Does a Stock Split Affect a Company's Market Capitalization? ▴ Learn

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.

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