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Benefits of a share split
Investors should be aware of the benefits of a share split. Lower share prices attract many smaller investors. Stock market activity increases a company's price, which benefits well-positioned investors. Share splits are more likely to be noticed by investors with more financial knowledge. Below is a list of the benefits of share splits for investors.

Low share prices attract short-term traders and casual investors, as well as equity funds that tend to stay in one place rather than diversify. Trading stocks tends to be volatile, so they aren't suitable for long-term investors. Investors who wish to take their profits can do so through a share split. Investors can buy more shares at a lower price with lower prices. The lower price may appeal to short-term investors, but it won't benefit long-term investors.
A share split, also known as a stock split, is a corporate action that increases the number of a company's outstanding shares while proportionally reducing the share price. The primary benefit of a share split is enhanced liquidity. By lowering the share price, more investors, including those with limited capital, can afford to buy the stock, increasing trading activity and market accessibility.

Share splits can also lead to increased market capitalization and broader investor interest, potentially attracting institutional investors. Moreover, a lower share price may make the stock more attractive to retail investors, promoting broader ownership and liquidity. Additionally, a share split can create a positive perception of the company's growth and prospects, boosting investor confidence. While a share split does not fundamentally alter a company's value, it can have psychological and practical advantages that contribute to a more dynamic and accessible market for the company's shares.

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