FTS is responsible for administering share splits. A share split is a corporate action in which a company’s existing shares are divided into multiple shares.

Although the number of shares outstanding increases by a specific multiple, the total dollar value of the shares remains the same compared to pre-split amounts, because no real value has been added as a result of the split. The stock’s market capitalization, remains the same, just like the value of the $100 bill does not change if it is exchanged for two $50s. For example, in a 2-for-1 split, each shareholder receives an additional share for each share he or she holds, but the value of each share is reduced by half: two shares now equal the original value of one share before the split.