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What's the main difference between watered down stock which was outlawed, and the ability for a company to create a stock split?

Stocks
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May 2016

Watered stock is stock issued at a higher value than the company.  Possibly by overvaluing  assets, artificially inflating the company value, or just plain fraud.

Stock split just increases the outstanding shares and decreases the value per share.  The end result is that the company is still worth the same.  It's like making change for a dollar:  $1 = 4 quarters or 10 dimes.  Nothing fundamental has changed.