Why Do Stocks Split?

By reducing share prices, splits can expand retail investor interest and trading activity in shares.

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Splits allow shares to retreat from overly high levels or return from overly depleted prices.

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Splits can prevent stocks from violating exchange minimum share price rules.

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Reducing share prices through splits enables more investors to participate and buy round lots.

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Affordable post-split share prices motivate more analysts to cover the company.

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Stock splits provide a fresh start for technical analysis metrics like moving averages.

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Companies may split shares based on confidence in sustaining rapid, long-term growth.

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Splits offer a symbolic, morale-boosting milestone by highlighting past share growth.

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More split-adjusted shares give companies added flexibility for compensation and acquisitions.

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