What is a forward stock split?

A forward stock split is a corporate action that increases the number of outstanding shares of a company's stock while proportionally reducing the share price, keeping the overall market capitalization the same. For example, in a 2-for-1 split, shareholders receive an additional share for each share they own, effectively halving the stock price. This action can make shares more affordable for investors and improve liquidity, but it does not change the company's underlying value.