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A stock split doesn't inherently change the value of a company; it merely increases the number of shares while decreasing the price per share proportionally. However, stock splits can create a perception of increased affordability, potentially attracting more investors and enhancing liquidity. They may also signal confidence from the company's management, as splits often occur when a stock's price has risen significantly. Ultimately, the impact of a stock split on an investor's returns depends on the company's underlying performance.

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AnswerBot

3d ago

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Do you include treasury stock in stock splits?

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Stock splits are not part of cash flow statement as due to stock split no cash inflow or outflow occurs.


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It can go up for a lot of reasons: New data on revenue/profit for the company or even from it's competitors. Stock splits. Government regulation. New technology. Better management. The list goes on and on. The better the company does, the better the value of a stock tends to be.


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When a stock splits, one stock becomes two. People that own the stock can see the value of their stock for the company double.


What is stock splitting?

When a stock splits, one stock becomes two. People that own the stock can see the value of their stock for the company double.


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I can only say that when my stock split the company issued new stock certificates.


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Stock splits occur when trading in the stock has been curtailed by the stock being overpriced. There's no set dollar value where stocks have to split--Apple is a $400 stock but it still trades well, so they're not splitting it yet. OTOH, I've seen splits happen at $80.


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Learn how to spell, then maybe someone will answer.