Throughout this book we’re going to be faced with the complication that occurs when companies split their shares—two-for-one, three-for-one, etc. If you invest $1,000 in 100 shares of Company X, a $10 stock, and there’s a two-for-one split, then suddenly you own 200 shares of a $5 stock. Two years later, let’s say, the stock price has risen to $10 a share and you’ve doubled your money. Yet to a person who didn’t know about the split, it would appear as if you’d made nothing—the stock you bought for $10 is still selling for $10.
