A stock split is a strategic move by a company where it increases the number of available shares by reducing the face value of its stock. Companies often opt for stock splits to enhance liquidity, as the stock price typically decreases post-split. It's important to note that while the number of shares increases due to a reduction in face value, the overall value of your investment remains unchanged.

For example You are holding 100 shares of stock A with a face value of 10 each. Company A will announce a split from 10 face value to 1. After split you will be holding 1000 shares of stock A with a face value of 1 each.

Learn more about stock splits in our detailed article on Jiniversity.