An increase in the number of shares of a corporation's stock without a change in the shareholders' equity. Companies often split shares of their stock to make them more affordable to investors. Unlike issuing new shares, a stock split does not dilute the ownership interests of existing shareholders. For example, if you own 100 shares of a company that trades at $100 per share and the company declares a two-for-one stock split, you will own 200 shares at $50 per share immediately after the split. If the company pays a dividend, your dividends paid per share also will fall proportionately.
What Are Bonds?
A bond is a debt security, like an IOU. Learn about the benefits and risks of investing in bonds or bond funds.
New Resources for Older Investors
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How to Open a Brokerage Account
Read our Investor Bulletin to learn what to expect when opening a brokerage account.