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Stocks can go up, down, or stay sideways, but sometimes they split. There are two types of stock splits: conventional and reverse. A conventional split increases the number of shares while decreasing the price of each share, maintaining the total value of the company's shares. This is like cutting a cake into smaller pieces. For example, Apple split seven for one in June 2014, increasing their shares from 861 million to 6 billion, while maintaining a market cap of $555 billion. Companies typically split their stock when share prices are high.
