A company is splitting its stock. Here's why you end up with more shares worth the same total.

Originally reported as: “MegaCorp board approves 4-for-1 stock split effective next month”

A well-known company announced a stock split, which means it will divide each existing share into several smaller ones. If you own the stock, you end up holding more shares, but each is worth proportionally less, so the total value of your holding doesn't change. Companies often do this to make a high-priced share more affordable and easier to trade. It's one of those corporate moves that sounds bigger than it actually is for your wallet.