2 Recent Stock Splits You've Never Heard of That Certain Wall Street Analysts Think Could Soar 39% and 62%
Stock splits can be undertaken for several reasons. They can bring a stock's price down to make it more affordable for a wider range of investors. They can increase a stock price if it's too low, which can be useful if a company trades as a penny stock, because some investors have a policy about not buying penny stocks. Stock splits can also be used in a company's effort to return capital to shareholders. The important thing to remember is that while stock splits change the share count and share price, they don't by themselves change the market capitalization of a company (and, therefore, your equity position) if you happen to own a stock prior to the split.Continue reading
Stock splits can be undertaken for several reasons. They can bring a stock's price down to make it more affordable for a wider range of investors. They can increase a stock price if it's too low, which can be useful if a company trades as a penny stock, because some investors have a policy about not buying penny stocks. Stock splits can also be used in a company's effort to return capital to shareholders.
The important thing to remember is that while stock splits change the share count and share price, they don't by themselves change the market capitalization of a company (and, therefore, your equity position) if you happen to own a stock prior to the split.
