A stock split increases a company’s shares outstanding by dividing each existing share into multiple new shares, while proportionally reducing the price per share so the total value of any shareholding stays the same. In a 2-for-1 split, for example, a shareholder with 1,000 shares at RM10.00 each would end up with 2,000 shares at roughly RM5.00 each — the total value of the holding is unchanged, only the number of units and the price per unit. Companies typically split shares to bring the per-share price down to a level that makes one board lot more affordable, which can improve trading liquidity, especially for stocks whose price has risen substantially over time. A stock split says nothing about a company’s underlying earnings, debt, or growth — those fundamentals are exactly the same before and after, only sliced into more, cheaper pieces.
Stock Split
What a stock split means, why companies do them, and why they don't change a company's underlying value.
Last updated: 12 July 2026
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