Stock splits have become a popular maneuver among some of the world's largest technology companies to keep their Stock prices accessible to their employees and small investors. Amazon, , Nvidia, and Tesla are just some of the names that have enacted stock splits in the past few years alone.

Simply put, when a company creates substantial amounts of value, investors sometimes need to fork out hundreds, or even thousands of dollars to buy a single share. While some brokers offer fractional shares, many investors prefer the idea of owning one full slice of a particular company.

A stock split works by increasing the amount of shares in circulation, which shrinks the price per share by a proportional amount. A 3-for-1 split would increase a company's share float by 3 times, while reducing the share price by two-thirds. The value of the company remains exactly the same, but the cosmetic reduction in its stock price allows investors to buy with a much smaller outlay.

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Source Fool.com