A stock split increases the number of a shares a company has, and the market usually views the move favorably.A stock split is when a company decides to increase the number of shares by dividing its existing shares into additional shares.
Stock splits are often good signs for shareholders, attracting new investors and eventually leading to a share-price rise.As an investor, the idea of "splitting" anything is probably not at the top of your list. A stock split occurs when a company makes its shares more affordable by dividing its existing shares into additional, less expensive shares.
If you're already a shareholder in a company when it declares a stock split, not much changes. Nevertheless, it's important to grasp how stock splits work, especially for understanding how the market may react post-split. Public companies have a set amount of outstanding shares available in the market.
A stock can be split in as many ways as a company chooses, supplemented with ratios such as "2-for-1," "3-for-1," all the way up to "100-for-1". All this tells you is how much one share is now worth. For instance, in a 2-for-1 split, every single share held by an investor now becomes two. The number of shares the investor has literally doubled.
Now do money supply!
This is manipulating the price to let people think they buying cheap and it should be illegal.
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