A "stock split" is when a company decides to divide its existing shares into more shares, which makes the price of each individual share lower. Think of it like exchanging a $10 bill for ten $1 bills – you have more bills, but the total value you hold is still the same. The company's overall value doesn't change, but the stock becomes more affordable per share.

The background for these keywords trending is that Netflix has recently announced a new stock split. While the company has split its stock twice before, in February 2004 (2-for-1) and July 2015 (7-for-1), speculation about another split had been ongoing as its share price climbed significantly.

The reasons why Netflix, and companies in general, perform stock splits are primarily to make their stock more accessible and attractive to a wider range of investors, especially individual investors who might find a very high share price intimidating or out of their budget. By lowering the price per share, more people can afford to buy whole shares, which can also boost how easily the stock is traded (its "liquidity"). For Netflix, its share price had reached over $1,100, and the recently announced 10-for-1 split will significantly reduce the price per share, making it more appealing for retail investors and also for its employees participating in stock option programs. This move can also be seen as a sign that the company's management is confident about its future growth.