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Individual Stocks

Selecting Individual Stocks

What is a “stock split”?

A stock split happens when a publicly traded company decides to divide its outstanding stocks in half, or split (doubling the number of shares outstanding), while cutting the price of the shares in half. Investors usually view this as a favorable indicator for the company’s stock, and normally will wish to acquire more shares at a more favorable price. It also indicates the company’s belief in its own future prospects. Some experts discount the perception that stock splits are generally beneficial for the company or investor, as a company has inherent value no matter how many shares are available.



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