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What are stock splits and how do they impact investors?

What is a stock split? A stock split occurs when a company divides the existing shares of its stock into multiple new shares. The number of shares outstanding will increase by a set multiple, but the total dollar value of the shares and the company’s market capitalisation stays the same as the pre-split value. The split doesn’t add any real value. However, after the stock split takes effect, the share price and the market cap might change depending on the market’s reaction. The most po...
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