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Why Stock Splits Might Occur

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The most common reason for a stock split to occur is because a company feels that its stock price is too high or too expensive and will not be decreasing in price or value for its investors in the near future. Purchasing a stock before it splits will usually be the best time to buy a stock due to the laws of supply and demand and favorable media coverage. Additionally, stock prices tend to increase a small bit following a stock split.