371 | Why Does the Stock Market Go Up? | Brian Feroldi
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What Is a Stock Split?
A stock split is when a company takes the total number of shares that are outstanding and increases it by a certain amount. The dollar price of one share of amazon is going to drop by a factor of 20, from three thousand 300 dollars to about a hundred and 65 dollars or so per share. However, whether you buy or own the stock before the stock split, amazon's value, the market capitalation of amazon, will be completely unchanged.
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