Answer Posted / ps21
All publicly-traded companies have a set number of shares
that are outstanding on the stock market. A stock split is
a decision by the company's board of directors to increase
the number of shares that are outstanding by issuing more
shares to current shareholders. For example, in a 2-for-1
stock split, every shareholder with one stock is given an
additional share. So, if a company had 10 million shares
outstanding before the split, it will have 20 million
shares outstanding after a 2-for-1 split.
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