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Thursday, July 21, 2011

How to Calculate Stock Split

A stock split or stock divide increases the number of shares but reducing the total value of each share. To calculate stock splits, you will need to determine the rations like 2-1, 2-3, 2-4, etc.

Learn how to calculate a stock split with the following examples:

(1) If you owned 60 shares worth $10 per share prior to the split, and later the company decided to execute a 2-for-1 stock split, then

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