Stock Split
تجزئة الأسهم
A stock split divides each existing share into several shares of lower par value, increasing the share count while leaving the company’s total market value unchanged. The share price adjusts proportionally, so the value of each shareholder’s stake is not affected. Companies listed on the EGX have used splits to lower the price per share and broaden trading in the stock.
Example
A two-for-one split turns one share worth 200 EGP into two shares worth 100 EGP each. Your holding's total value is identical the instant before and after.
Why it matters
Splits lower the price of a single share, which can widen the pool of buyers able to deal in round amounts. The economics of the company are entirely unchanged.
A common mistake
Treating a split as good news about value. Nothing about the business changed — only the number of slices. Any price move around a split reflects what people infer from it, not the split itself.