Part 2/7:
A stock split occurs when a company divides its existing shares into multiple new shares, essentially adjusting the proportion of ownership while keeping the overall value of the company unchanged. Dylan Lewis likens this process to slicing a pie: if a company initially has a valuation divided into eighths, a two-for-one stock split would change that division to sixteenths. If an investor owned one eighth of the pie, the split would now grant them two slices, though each slice represents a smaller piece of the overall pie.