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Davits Healthcare Partners Inc. STOCK SPLIT Frequently Asked Questions August / September 20131. What is a 2for1 stock split in the form of a stock dividend? In a 2for1 stock split, each shareholder
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Stock split is a corporate action where a company divides its existing shares into multiple shares. This increases the number of outstanding shares while reducing the price per share proportionally.
The company undertaking the stock split is required to file the necessary documentation with the appropriate regulatory bodies, such as the Securities and Exchange Commission (SEC) in the United States.
To fill out a stock split, the company must submit the required paperwork, including a stock split resolution, to the regulatory authorities. They may also need to make relevant disclosures to shareholders and the public.
The purpose of a stock split is to make the shares more affordable for investors by reducing the price per share. It can also increase liquidity and improve marketability of the company's stock.
The information reported on a stock split may include the company's name, stock symbol, the split ratio, the effective date of the split, and any other relevant details required by the regulatory authorities.
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