Share splits and reverse splits
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Share splits and reverse splits
When share values move out of some minimum and maximum values, they are split 1 to 2 (when values are high), or reverse split (2 to 1) when values are low. The splits change the total number of shares and their values follow these changes with no effects to the market value of corporations or values of portfolios. Share holders see the number of their shares double with every split and decline by 50% with every reverse split. These splits are a standard feature in the real world. They prevent the range of share values from widening to several cents to millions.
In simcountry, having share values in the range of 20 to 200 or lower, resulted in very large numbers of shares in many corporations. These values are now allowed to increase. The result will be that share values will become much higher but the numbers of shares will decline from the current multi billions.
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