Stock splits can also boost liquidity. An example of a stock split would be a 2-for-1 stock split. Let's say an investor owned 10 shares of a stock trading at $200 per share, meaning their total ...

An example of a stock split would be a 2-for-1 stock split. Let's say an investor owned 10 shares of a stock trading at $200 per share, meaning their total equity position amounted to $2,000.