What does it mean to “split” a stock and why would a company choose to do it?

Question

I don’t invest in $GME, but I noticed their investors are very excited about the stock splitting later this month. What does that mean and what are the implications?

I gather that if you owned one stock, you’ll own four after the split, but I’m not really sure why that’s cause for so much celebration.

Thanks!

In: 5

Answer 1

> [That is around the $30 pre-split price target Wedbush analyst Michael Pachter assigns the stock, which he rates at Underperform. “Makes it more affordable for unsuspecting rubes who haven’t yet lost all of their money,” Pachter told Barron’s via email when asked about the split.](https://www.barrons.com/articles/gamestop-stock-split-4-for-1-51657142058?mod=djem_b_Weekly%20Barrons%20feed%20for%20last%2024%20hours)

This appears to be the Bearish opinion. What is the Bull opinion?