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Alright, before we jump into JetBlue's specific details, let's nail down the basics. A **stock split** is when a company decides to increase the number of outstanding shares, which dilutes the value of each existing share. Think of it like this: Imagine you've got a pizza, and you cut it into more slices. The pizza is the same size, but there are now more pieces. That's essentially what happens with a stock split. A common type of stock split is a forward split. For instance, a 2-for-1 split means that for every share you own, you now get two shares. The price per share usually adjusts accordingly, so your overall investment value remains the same. A reverse stock split does the opposite, consolidating shares. This can boost the stock price, but doesn't necessarily mean the company is doing better, and it doesn't really affect the value of your investment. It's a strategic move that companies use to adjust the share price to make it more attractive or to meet exchange listing requirements. The goal is to make the stock more accessible to a wider range of investors, potentially increasing liquidity and trading volume. Stock splits don't change the company's market capitalization (the total value of all shares outstanding) because it's just redistributing the ownership across a larger number of shares, or conversely, a smaller number of shares. It is important to remember that these splits affect the number of shares, but not the company's overall value.
