Forward stock splits attract a lot of investor attention, so many companies use forward splits to develop more investor following for their stocks. Some companies regularly split their stock. They have large numbers of investors who happily accumulate large holdings of the stock this way. They also have loyal investors who regularly trade the stock splits for the extra profits they often provide. Although the intrinsic value of the stock is not changed by a forward split, investor excitement often drives the stock price up after the split is announced, and sometimes the stock rises further in post-split trading.
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