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Split - Meaning

Sometimes, companies split their outstanding shares into a larger number of shares. If a company with 1 million shares did a twofor- one split, the company would have 2 million shares. An investor with 100 shares before the split would hold 200 shares after the split. The investor's percentage of equity in the company remains the same, and the price of the stock he owns is one-half the price of the stock on the day prior to the split.

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