Stock splits, which occur when a company divides its existing shares into multiple shares, effectively increasing the outstanding shares while maintaining the same market capitalization, have been all the rage on Wall Street over the past few years,

Shares of Taiwan Semiconductor Manufacturing soared over 100% during the last 12 months, placing the chip giant in rare company -- the trillion-dollar club.

Shares of ServiceNow have gained more than 4,000% since the company went public, and the stock is now hovering near an all-time high.

Companies will commonly split their stock after a strong run-up in price. While it doesn't change any of the underlying fundamentals of the company, it's a strong signal from management that it believes the stock will continue moving higher.