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Sagot :
Final answer:
Stock splits are strategic moves by companies to make their shares more accessible, adjust prices, and demonstrate confidence in future growth.
Explanation:
A company may decide to split its stock for various reasons:
- To make the stock more affordable for individual investors and increase liquidity, driving more interest in the stock.
- To adjust the stock price to a more desirable trading range, attracting a wider range of investors.
- To signal to the market that the company is confident in its future growth potential, potentially leading to an increase in stock value.
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