What is stock split

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A stock split is a corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares. Although the number of shares outstanding increases by a specific multiple, the total price value of the shares remains the same compared to pre-split amounts, because the split does not add any real value.

A stock split is a corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares.

Although the number of shares outstanding increases by a specific multiple, the total dollar value of the shares remains the same compared to pre-split amounts, because the split does not add any real value.

Reverse stock splits are the opposite transaction, where a company divides, instead of multiplies, the number of shares that stockholders own raising the market price accordingly.