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Quantitative Finance · Glossary

What is Stock split?

Definition 8.5 Markets I: The Ecosystem and Exchange-Traded Markets · Chapter 8 — Shares, Corporate Actions and Indices

In a kk-for-1 stock split every share becomes kk shares. The number of shares is multiplied by kk, the price is divided by kk, and nothing else changes. A reverse split has k<1k<1.

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