UNDERSTANDING STOCK SPLITS AND CUT-OFF PRICES IN IPOS

Understanding Stock Splits and Cut-Off Prices in IPOs

Navigating the nuances of initial public offerings (IPOs) can be challenging. Two key concepts that often baffle investors more info are stock splits and cut-off prices. A stock split is a corporate action where a company splits its existing shares into multiple stocks, effectively decreasing the cost per share without affecting shareholder equity.

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