Stock splits can also boost liquidity. An example of a stock split would be a 2-for-1 stock split. Let's say an investor owned 10 shares of a stock trading at $200 per share, meaning their total equity position amounted to $2,000. In this scenario, the company would exchange two shares for each one the investor owned, so the number of shares the investor owned would double from 10 to 20. But remember, the equity position of $2,000 remains the same, so the new share price would be $100 ($2,000/20 shares). A ...