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Why does a company lower the price of their stock?

A company carries out a stock split to increase liquidity and trading volume. Their motive is to make shares more affordable to investors or traders by lowering the price of the stock to a more comfortable level to appeal to a larger buyer base. A company splits its stock in various ratios like 5:1 and 10:1, meaning that a 10:1 split will divide 1 share into 10 shares.

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