What does it mean?
📉 A stock split is a process where a company divides each share into multiple lower-priced shares, but the total value of your investment stays the same.
Why does this happen?
🧠 Usually, this happens when a share's price is too high, making it harder for new investors to buy. by splitting the shares, the price per share becomes more affordable, but you still hold the same total value in your portfolio.
Practical example
📊 Imagine that on march 31, you own 5 shares of tsla (tesla), each priced at $1000, giving you a total investment of $5000.
🔁 The company announces a 1-for-10 split starting on april 1, meaning you’ll receive 10 shares for every share you own.
📈 So, when the market opens on april 1:
You’ll have 50 shares (5 × 10)
Each worth $100
And your total value remains $5000
Key things to remember
📌 The number of shares increases, the price per share decreases, but your total value stays the same.
📝 If you hold shares in a libertex portfolio, you don’t need to do anything—the system will automatically adjust your position after the split.