Impact on the Company
Company XYZ has 1,000,000 shares outstanding, worth $100 per share, giving them a market capitalization of $100,000,000.
XYZ then declares a 2:1 Stock Split.
This doubles the number of shares (from 1,000,000 to 2,000,000), but cuts the price per share in half (from $100 to $50).
Now the company has 2,000,000 shares outstanding, worth $50 per share. Their market capitalization remains $100,000,000 - no change!