stock splits

What is stock dilution?

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Companies may need to raise capital and instead of borrowing, they can issue a share purchase plan or convertible securities. The benefit of these methods is that they do not take on more debt. However, the downside is that this can cause the stock to dilute. In this article we explain what a stock dilution is and the consequences when this occurs. Why do companies dilute their stock? Companies may issue share purchase plans to raise capital to fund a …

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What is a stock split and why do they happen?

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Apple has recently announced they will be undertaking a stock split. In this article we discuss the definitions and the reasons behind this. What is a stock split? Stock Splits can come in many ratios but the most common is a 2 for 1 stock split. These corporate actions occur when the board of directors decide to increase the amount of shares outstanding.  If a company had 50 million shares outstanding prior to the split, the corporate action will increase …

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