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What is a stock split?
A stock split is when a company divides its existing shares to lower the trading price and increase liquidity. The most common split ratios are 2-for-1 or 3-for-1 (sometimes denoted as 2:1 or 3:1), which means that the stockholder will have two or three shares after the split take place, respectively, for every share held prior to the split.
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