A stock split is the process of dividing a company’s shares into multiple fractional parts, while dividing the original value among them.
Splits are usually done to increase the liquidity of a stock and attract market participants — the price per share decreases, making the stock more affordable and attractive to buy.
Example:
If there is a 10-for-1 split of TSLA shares, where 1 share is worth $1000, after the split you will have 10 shares worth $100 each. For the shareholder, only the number of shares and the price per share change, but the total value of their portfolio (or the financial result of the position) remains the same.
Before: 1 share worth $1000.
After: 10 shares worth $100 each.
Accordingly, price charts across all information sources are adjusted and recalculated using historical prices divided by ten.
Please note: the price change during a stock split is technical, not trading-based, so it does not generate profit or loss.