It is the corporate action taken by management to increase outstanding number of shares while Market cap remains as usual, Let’s take an example company A issued 1 million shares and current market price is Rs 10. If the company goes for stock spilt of “2 for 1” issued shares now outstanding will be changed to 2millions with same market cap and price of share would be Rs 5. “3 for 1” means every shareholder will own 3 shares for every 1 share post split. “4 for 1” means every shareholder will own 4 shares for every 1 share post split. “5 for 1” means every shareholder will own 5 shares for every 1 share post split. Reason for implementing stock split 1) Shares should be affordable to all investors(mainly Retail investors) 2) When shares price is less, trading in the exchange would be high which leads to increase in market cap.