🍕

What's a stock split?

Why a $1000 stock can become a $250 stock overnight.

The idea

A stock split is like cutting a pizza into more slices — you get more pieces, but it's the same amount of pizza. In a 4-for-1 split, every share turns into 4 shares each worth a quarter as much. Your total value doesn't change at all; the stock just becomes cheaper per share so it's easier to buy. 🍕

Words to know

Stock split: When a company turns each share into more shares, each worth proportionally less — total value stays the same.
Reverse split: The opposite — many shares become one pricier share, often a warning sign for a struggling stock.
Share count: The total number of shares a company has, or that you own.

Try it — no account needed

Apple stock is $200 and you own 10 shares ($2,000 total). Apple does a 4-for-1 stock split. After the split, what do you own?

In the full lesson

1Make the call

Vine has 107 lessons like this one, each written three ways so a 7-year-old and a 17-year-old both get a version that fits.

Practice with real prices

Real market data, pretend money. Learn how investing actually works without risking a cent.

Start free