What is a split?

The split or it’s also used as stock split means that whenever the company considers that it’s shares have risen too high they perform a split. When a company sees that the current stock prices are putting of small investors then the board assembles and decide to perform a stock split. The most common split is the 1:2 this means if an investor has 1.000 shares in his possession each worth $50 then after the split he will have 2.000 shares each worth $25. By this split the investors percentage in the company won’t change and he will get the same amount of dividends.