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Split Ratio

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split ratio
The ratio by which the number of a firm's outstanding shares of stock are increased following a stock split. For example, a two-for-one split results in twice as many outstanding shares, with each share selling at half its pre-split price. The higher the split ratio, the greater the reduction in the price of the stock.
Split Ratio
Following a stock split, a ratio of the new number of shares outstanding to the old one. This shows an investor by how much a publicly-traded company has split its stock. The higher a split ratio is, the more the company's share price drops.


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