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What happens to my shares if a stock splits?

A stock split is similar to taking a $100 bill and splitting it into two $50 bills (or five $20 bills). The number of bills you hold increases, but the overall value of your money remains the same.

If a stock that you own splits, the number of shares of stock on the market (or market capitalization) for that company increases, but the total value of your shares remains the same.

For example, if a company you’re invested in issues a 2 for 1 split, you would receive one additional share for each share you currently own. Therefore, if you own one share of a company that is worth $100, after a split you would ultimately own two shares worth $50 each, and $100 in total.

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