Can stock splits double my money?

When a stock split occurs, the number of shares outstanding increases, while the price per share decreases proportionately. This results in no change in the total market capitalization, which is the market value of all outstanding shares.

Similarly, an investor's ownership stake in the company remains unchanged after a stock split. The investor's percentage ownership of the company remains the same, regardless of the increase in the number of shares.

Moreover, the fundamental value of the company, which is based on its earnings, assets, and other financial metrics, is unaffected by a stock split. The company's operations, revenue, and profitability remain the same.

A stock split is a corporate action where a company divides its existing shares into multiple shares, without altering the overall value of the company. In a perfectly efficient market, this action should not have any impact on the company's total market value or an investor's wealth.

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