Common types of index funds track various asset classes, including stocks, bonds, real estate, and commodities. Investors choose index funds based on their investment goals, risk tolerance, and the specific market or asset class they wish to track.

A stock split is a corporate action where a company divides its existing shares into multiple shares. In a stock split, the number of shares increases while the overall value of the company remains the same. The split is typically done in a specific ratio, such as 2-for-1 or 3-for-1, meaning each shareholder receives two or three shares for every one share they previously held. Stock splits are often carried out to increase the liquidity of the stock, make it more affordable for retail investors, and potentially attract more investors.