If a stock has a 2-for-1 split:

Name: If a stock has a 2-for-1 split:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A stock split does not change the total market capitalization because the number of shares outstanding increases proportionally to the decrease in the stock price. For example, if a stock was trading at $100 before a 2-for-1 split, and the split occurs, the stock price should drop to $50, but the number of shares outstanding will double. Therefore, the total market capitalization remains the same.

If a Stock Has a 2-For-1 Split