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What is Split on Libertex Portfolio account?

This is the process of dividing one expensive stock into several cheaper stocks of the same company so that the total value does not change.

Example: You have 5 shares of TSLA on 31.03 at a price of $1,000/share, that is, a value of $5,000. The company announces that from 01.04, a 10-for-1 stock split is being carried out, that is, 10 shares will be given for 1 share.

That means that on 1 April, at the opening of the market, you will already have 50 (5 * 10) TSLA shares at a price of $100 each. In this case, the total cost will remain the same at $5000.

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