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Kiplinger
Kiplinger
Business
Charles Lewis Sizemore, CFA

What Is a Stock Split and Why It Matters to Investors

A lumberjack is splitting wood with an axe in snow.

The market loves a stock split, but should you?

Red-hot artificial intelligence (AI) chipmaker Nvidia (NVDA) made headlines recently by announcing its high-profile stock split. It's common for high-growth companies to split their shares to make them easier for smaller investors to trade and to add liquidity. But what does that really mean? And how does it affect you as an investor?

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