A stock split in the Portfolio account is the process of dividing a company’s stock into several fractional parts, with the original value distributed among them.
A split is often used to increase the liquidity of a stock and attract market participants — its price is lowered, making it more accessible and appealing for purchase.
Example
In a 10-to-1 split of TSLA shares priced at $1000 each, you receive 10 TSLA shares priced at $100 each. For the TSLA shareholder, only the price and quantity of shares in the portfolio will change, while the total portfolio value remains the same.
Before: 1 share worth $1000
After: 10 shares worth $100 each