What is a stock split?

You may have come across "stock split" - but what is a stock split and how does it impact your investments?

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Share price growth can be a sign of success for a company, but too much can mean the stock becomes too pricey for new investors – it is at this point that a company may initiate a stock split. 

This is when a company decides to increase the number of shares it has in issue by giving its current investors extra shares for each existing share that they already own. 

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Marc Shoffman
Contributing editor

Marc Shoffman is an award-winning freelance journalist specialising in business, personal finance and property. His work has appeared in print and online publications ranging from FT Business to The Times, Mail on Sunday and the i newspaper. He also co-presents the In For A Penny financial planning podcast.