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Stocks go up; they go down; they go sideways, and sometimes they do something you might not expect they split. There are two types of stock splits: conventional and reverse. A conventional stock split occurs when a company divides its existing shares into more shares. The number of shares increases, but the price of each share decreases, so the total value of the companys shares remains the same. Think of it like cutting a cake: cutting more pieces doesnt mean you have less cake you just have smaller pieces. For example, in June 2014, Apple split seven for one, meaning each share became seven. Apple went from having roughly 861 million outstanding shares at about $645 per share to about 6 billion shares at about $92 per share. Despite there being more shares, the total value of Apples market cap remained the same at roughly $555 billion. A company typically splits its stock when the price of its shares is high. High prices can make it difficult for investors to buy the standard tra