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What is a stock split?

InvestingWarren Team

Quick answer

A stock split increases share count and reduces price per share proportionally. A 2-for-1 split doubles shares and halves the price; total holding value is unchanged. Companies do this to make shares more accessible.

Stock split example: 2-for-1 doubles shares and halves price.
Stock split example: 2-for-1 doubles shares and halves price.

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