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How does a 2 for 1 split work?


Would the stockholder get two shares at the same price? If I look at a chart and the price stays the same and there was a 2 for 1 split on a given day, does that mean the stockholder then has twice the value in their investment shares at the point of the split?

stock split means if you have 50 shares would become 100 shares i..e 2 for 1....total value would be almost same..

But before split price will go up sometimes 1.5 times or more.. surprisingly... because shares would be double... more buyers in the market...after split price would be down.. beacuse no one want to buy that time...

But no one knows.... sometimes rumor comes from company there is split in short time and price will go up almost doulble.. and finally nothing... its risky business...

In short, too much share price fluctuation during split time...

You will have twice as many shares, but the price of each will be divided by 2. Your total value will be the same, but it puts the price back down where the company feels it will trade more freely on the open market.

A stock split does not change the price, per say.It only provides you with, in this example, double the shares. The reason stocks are split is to lower their price per share, thereby making the stock more attractive to buy. In theory, that will drive up prices even more and provides existing shareholders with a win-win (more shares/higher price). Of course, it doesn't always work that way. The price is dictated by supply/demand and it could even fall after a split.

But, if it's a good quality company and you're a long-term investor, you accumulate wealth by accumulating more shares. Consequently, stock splits are a good thing.

I know someone who owns 70,000 shares of UPS. How do you think he acquired those shares? Stock splits, drip plans, DCA, and a lot of time.

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