Stock splits are often used to:

Question

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Stock splits are typically used to adjust the market price of a stock such that it falls within a preferred trading range. This is because some investors are more willing to buy stocks that are priced lower, and often perceive them to be more affordable or undervalued. By splitting a stock, a company can increase the number of shares outstanding and decrease their price, making them more attractive to investors who may have been hesitant to invest in the stock prior to the split. However, a stock split does not affect the actual value of a company or its equity.

Stock Splits Are Often Used To