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With 30,000 shares outstanding before the split, there will be 60,000 shares outstanding after the split.

With 8%, one would start with 2,400 shares and receive another 2,400 shares leaving them with 4,800 shares after the split.

Your position as a % after the split will be unchanged because everyone with a share was issued an additional share.

The total value of your shares, $235,200, will also not change since the equity value of the company has not changed - they just have more shares for the same value.

The price; however, has changed. Right after the split, each share went from $98.00 per share to $49.00 per share.

As an aside, historically, shares that split do outperform the market on average. However, there is bias in the results because only the best companies are able to effectively split their stock and, since they did not change operations, would have outperformed anyway.

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16y ago

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