This Investopedia article comprehensively explains stock splits, detailing their mechanics, rationale, and implications for investors. It differentiates between forward and reverse stock splits, exploring the various theories behind why splits often correlate with short-term price increases, despite theoretically having no impact on a company's fundamental value. The article also examines investor behaviour and biases that influence market reactions to splits, and it provides illustrative examples and calculations. Finally, it addresses practical considerations like key dates and tax implications.#finance #investing

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