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What Effect Does a Stock Split Have on Outstanding Shares

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What effect does a stock split have on outstanding shares of stock and what is its purpose?


Definitions:

Customer Defaults

Occurs when a customer fails to fulfill their payment obligations for goods or services received.

Repay

To pay back or return money that was borrowed from an individual, institution, or entity.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of a company's receivables that may not be collectible.

Factoring Proceeds

The cash received by a company from selling its accounts receivable to a third party, often at a discount, to immediately improve cash flow.

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