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Saving & Investing

Stock Split

Also called: share split, reverse stock split, 2-for-1 split

A stock split divides existing shares into more shares at a proportionally lower price — a 2-for-1 split turns one $600 share into two $300 shares. Nothing about the company changes: same market cap, same ownership share, same value. Splits are cosmetic, aimed at accessibility and optics, and fractional shares have largely removed even that rationale. A reverse split runs the other way and is often a sign of a share price low enough to threaten a listing.

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