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What is a share split

What is a share split
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Answer #1

Stock split refers to an increase in the number of shares of a company in the market without a change in the monetary value of shares.

For example: If a company declares stock split 2-for-1, it means the number of shares will be dubble and the value per share will be half.

Normally there are two purposes of the stock split-

1. Making of stock affordable for investors and

2. More shares can provide higher liquidity which facilitates easy trading in a stock exchange.

Thanks & all the best......

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