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Can someone explain to me how stock splits work? I've been told that market cap doesn't change after say a 2:1 split, but if outstanding shares double overnight and the stock price doesn't decline hasn't the market cap doubled too?
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Can someone explain to me how stock splits work? I've been told that market cap doesn't change after say a 2:1 split, but if outstanding shares double overnight and the stock price doesn't decline hasn't the market cap doubled too?

The value of each stock is now worth half of what it was before the 2:1 split price.

TB
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I've been told that market cap doesn't change after say a 2:1 split,


Correct (in theory).

but if outstanding shares double overnight

Yes, that definitely happens.

and the stock price doesn't decline hasn't the market cap doubled too?

The stock price will immediately decline. The exchanges adjust all quotes and standing orders, and all brokers follow suit. It may not drop by exactly half though.
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