what is the purpose of stock split
Definition of 'Stock Split'. Definition: When a company declares a stock split, the number of shares of that company increases, but the market cap remains the same. Existing shares split, but the underlying value remains the same. As the number of shares increases, price per share goes down. Description: Stock split is done to infuse liquidity and to make shares affordable for various investors who could not buy the shares of that company before due to high prices.