No, a stock split does not change the total market capitalization of the company. The number of shares increases, but the stock price adjusts accordingly.

Companies split stocks to: Increase liquidity by making shares more affordable. Attract retail investors who may find the stock too expensive. Enhance trading volume by reducing per-share prices.

A stock split is a corporate action where a company divides its existing shares into multiple shares to increase liquidity and affordability. For example, in a 2-for-1 stock split, if…