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Formula for Calculating Stock Splits | Sapling

Formula for Calculating Stock Splits | Sapling

When a company splits its stock, it increases the number of shares outstanding and decreases the price per share. If you own that stock the number of the shares you own increases, but their total value does not change because the split decreases the price per share to the same degree. A Quick Analogy An easy way to remember how a split works is ...

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