What investors need to know about stock splits
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Description
Abstract: From time to time, public companies announce stock splits or reverse stock splits. This article explains what this means — and what it doesn’t. For example, when a company announces a stock split, it’s usually because management believes the stock price has gotten too high relative to its peers and that a lower price will boost liquidity. But contrary to what some investors may believe, stock splits don’t increase the value of stock holdings.
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