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What is a Stock Split? And Why Do Companies Split Their Shares?

What does it mean when a company decides to do a stock split?

For the company and existing shareholders, it actually doesn't change that much. Stock splits change the number of ways ownership is sliced, but they don't change the value of a company or the value an individual holds.

That's because when a company announces a stock split, they give existing shareholders stock as a dividend to make them whole for the increase in share count.

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