Remove the screw and top cap then look down the stem, inside the tube there should be a star nut, you may need a new star nut or screw, there is a special tool for removing the star nut but you can just hammer it down the tube out the way and push a new one in from the top. dont push the new star nut in too far or the screw will not reach it.
SOURCE: How can I raise handlebars on a 26 in. Mountain
You need an Allen wrench (a.k.a. hex key) to fit the bolt head right in the middle of the handle bars. Loosen this bolt just 2 or 3 turns then tap the head with a soft hammer or block of wood and a hammer. Then pull the handle bar stem up (and all of the way out so you can see how the wedge-shaped nut at the bottom of the stem works). Look for a mark on the stem telling you how high you can safely raise the bars (you have to leave enough of the stem inside the tube so that it will be strong.) Put it back in and tighten it up. If you found this helpful, please vote. Good luck
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