A stock split occurs
when a company releases additional stock in a structured manner without
decreasing shareholder equity. For example, in a 2 for 1 stock split, an
investor who owns 100 shares of a stock valued at $100 per share before the
stock split will own 200 shares valued at $50 per share after the split. After
the stock split the investor owns twice as many shares, with each share worth
exactly half as much as before the stock split.
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