Stock splits occur when companies divide their shares into multiple lower-priced units without changing their market caps, which is the value of all the shares combined.

Think of it like a pizza. Whether the pieces are small or large, the size of the pie remains the same, but it can be divided into as many slices as you want. This tactic can be a great way to make an expensive stock more liquid and attractive to smaller investors with less cash available.

After enjoying explosive rallies over the last five years, Nvidia (NASDAQ: NVDA) and Chipotle Mexican Grill (NYSE: CMG) have decided to split their stocks. Let's explore what this could mean for long-term investors of these two stocks.

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Source Fool.com