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Community: Investing Wiki

Term Of The Hour

explain stock split: Original post by Cam Merritt of Demand Media Companies generally like to see the price of their stock rising, as it keeps the shareholders happy, and the shareholders are the ultimate owners of the company. But if the price gets too high, shares become harder to sell, limiting further price growth. That's why the board of directors may opt to split the stock -- put more shares into circulation at…

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