A stock split 🖖 is when a company increases the number of available outstanding shares. Keep in mind, the value of the company stays the same as the price of the shares split too.
Stock splits are a smart way to get more investors on board and increase liquidity quickly. Most often, this is done when share prices are high. Less people are likely to buy shares that are priced at $1,000 each.
There are a whole lot of legal procedures companies have to adhere to before a stock split.
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