Business and Personal Finance Dictionary

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• SPLIT
  
  When a company increases the number of shares it has outstanding. In a two-for-one split, each share is split into two. The investor's percentage of equity in the company remains the same. So, if you had 100 shares valued at $50, each, after the split you would have 200 shares valued at $25 each. Companies often split their stock when the price gets too high. There are also reverse splits, when companies decrease the number of shares outstanding.
  
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