Does a stock split affect the stockholder’s proportionate ownership? or does a stock split affect mainly the price of the stock (increase the share price or decrease the share price)?
I know that issuing a new share of stocks or issuing a convertible stock are dilutive actions to the stockholder’s ownership.
A stock split doesn’t impact the investor’s proportionate ownership of the total value of the shares.
E.g. with a 2:1 forward split, you’ll end up with twice as many shares, but each share is worth half.
It’s primarily just a way for them to alter the individual share price for market optics.
Totally agree with @Justin. Here’s an easy analogy. Let’s assume a pizza is sliced into 1/4ths and you are given one slice. You own 25% of the pizza. A 2:1 stock split would be similar to taking your slice and cutting it in half. Do you have more slices? Yes. Are the slices “worth less?” Yes. However, you still only own 25% of the overall pizza.
Hope this helps!