A stock split occurs when a company divides its existing shares into multiple new shares, increasing the total number of shares while reducing the price per share. For example, in a 2-for-1 stock split, each shareholder receives an additional share for every share they own, effectively halving the share price. This action does not change the overall market capitalization of the company. Companies often perform stock splits to make their shares more affordable for a broader range of investors. A lower share price can attract more buyers, potentially increasing liquidity and trading volume. Notable companies like Apple and Tesla have executed stock splits to enhance accessibility for retail investors.