Stock splits are often used to:

Question

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Stock splits are primarily used to adjust the market price of a stock such that it falls within a preferred trading range. This is typically done to make a stock more affordable and attractive to a broader range of investors. A stock split does not affect the overall value of a company or its total equity, but it does increase the number of shares outstanding, which can improve liquidity and trading volume. Additionally, a higher number of shares outstanding can lead to a higher market value for the company, which is often seen as a positive sign by investors.

Stock Splits Are Often Used To