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Stock Split

Definition: Exchange of the number of shares of stock outstanding for a larger number. Definition: [crh] Occurs when a firm issues new shares of stock and in turn lowers the current market price of its stock to a level that is proportionate to pre-split prices. For example, if IBM trades at $100 before a two-for-one split, after the spliDefinition: t it will trade at $50, and holders of the stock will have twice as many shares as they had before the split. See: Split.

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