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Does it mean that when companies like Microsoft ( who has split more than 10 times) had some huge number of shares in authorised shares account and very few in outstanding. (Because 1 share of any company after 10 splits become 1024 shares.) Or do they acquire these additional shares from market or somthing like that.

Actually, when a company effects multiple splits over the years, it usually has to conduct one or more shareholder's votes to increase the number of authorized shares. This is sometimes done as part of the annual meeting voting, but it can also be done through a special shareholder's meeting.

JDSU has declared a 2:1 split. As part of the annual shareholder's meeting next week, there is a vote to increase the number of authorized shares in order to be able to issue the split.

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