Stock Split

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Issue:

Miscellaneous

 

Written by:

Julia R

 

Date added:

November 30, 2014

 

Level:

University

 

Grade:

A

 

No of pages / words:

8 / 2096

 

Was viewed:

10133 times

 

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Essay content:

Companies are able to split their stocks in any number of ways. The most common stock splits are, 2-for-1, 3-for-2 and 3-for-1. For example, if you own 100 shares of a company that trades at $100 a share and it declares a 2-for-1 stock split, you will own a total of 200 shares at $50 a share after the split...
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It is also possible to have a reverse stock split: a 1-for-10 means that for every ten shares you own, you get one share. In spite of the fact that theoretically stock split has insignificant effect on the firm's capital structure and value of what shareholders own, many companies consider carrying out this corporate action...
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