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Split

In finance, the term split refers to the practice of increasing the shares which make up a company’s stock. In a split, shares are increased by a certain ratio, while the total value of the stock remains the same. This action lowers the price of individual shares.

Example: A company’s shares are worth CHF 150. Using a split with a 3:1 ratio, the company divides each of its shares into 3 shares worth CHF 50 each.

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Daniel Dreier is editor and personal finance expert at moneyland.ch.

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