A stock split refers to buying a share of stock at a discounted price if full payment is made at the time of purchase.

Question

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When companies find their stock price has appreciated sufficiently high such that it may be out of reach for many investors, the Board of Directors will announce a stock split, where investors on record of holding the stock will receive two or more shares of stock for each one share that they currently hold. The dollar value of the investor's holdings in this stock stays the same.

A Stock Split Refers to Buying a Share of Stock