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Finance Glossary

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Over 700 finance terms, Shmooped to perfection.

Forward Split

Definition:

This occurs when a stock splits so that the shareholders own more shares after the split than before. A 2:1 split is an example of a forward split; your holdings double in size. Just remember that the company isn't worth any more after the split. For your shares to be worth more, the pie has to grow. All that a split does is cut the same pie into more slices.

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