Q » How do stock splits and reverse stock splits affect a company's market capitalization?
17 Oct, 2025
A » Stock splits increase the number of shares while reducing the price per share proportionally, leaving market capitalization unchanged. Conversely, reverse stock splits decrease the number of shares and increase the price per share proportionally, also maintaining the same market capitalization. Both actions are typically used to adjust share prices without affecting the company's overall value, allowing for greater accessibility or compliance with exchange requirements.
17 Oct, 2025
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