stock split

What is a stock split?

Corporations may decide to make their shares more attractive by conducting a stock split. In this article we discuss why companies have stock splits and what happens to the shares. Definition A stock split occurs when the companies decrease the stock price and issues more shares so the market capitalisation stays the same. If a 2 for 1 stock split occurs the stock price is halved but the shareholder receives twice the amount of shares, so the total value remains …

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