A stock split is a corporate action where a company divides its existing shares into multiple new shares. In a stock split, the number of shares increases while the price per share decreases proportionally. For example, a 1:2 split turns 1 share priced at ₹1,000 into 2 shares of ₹500 each. The total value of your investment remains unchanged. Stock splits improve liquidity by increasing the number of shares available for trading. They can also enhance affordability, making the stock more accessible to a larger pool of investors.