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Investing in a company that announced a stock split can be beneficial as it indicates positive growth and can attract more investors due to increased liquidity.
Investing in a company that announced a stock split can be considered favorable as it indicates that the company's share price has been growing steadily.
Stock splits increase the number of shares outstanding while lowering the price per share, potentially attracting more investors and increasing liquidity.
For example, if a company announces a 2-for-1 stock split, an investor who owned 100 shares worth [tex]$100 each would then own 200 shares worth $[/tex]50 each.
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