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Explaining the Basics of a 2-for-1 Stock Split: A stock split is when a company divides its existing shares into multiple shares, often to lower the price per share. A 2-for-1 split means investors receive 2 shares for every 1 they own. This affects the cost basis, reducing it by half, while the total value of your holdings remains unchanged. Learn more about how stock splits work and their implications.

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