Stock-Split Watch: Is Oracle Next?
Last year, some of the biggest technology companies all made the same decision: They announced stock splits. From Nvidia to Broadcom and Super Micro Computer, the market was ripe with stock-split activity.Why should we care about these moves? After all, they don't change anything fundamental about a company or its stock. That's true, but they do signal something positive.The announcement of such an operation suggests a company is confident about its future and the potential for its stock to soar from a new lower level. Stock splits, through the issuance of additional shares to current holders, decrease the stock price. And here's another plus: At a lower price, the stock becomes more accessible to a broader range of investors.Continue reading
Last year, some of the biggest technology companies all made the same decision: They announced stock splits. From Nvidia to Broadcom and Super Micro Computer, the market was ripe with stock-split activity.
Why should we care about these moves? After all, they don't change anything fundamental about a company or its stock. That's true, but they do signal something positive.
The announcement of such an operation suggests a company is confident about its future and the potential for its stock to soar from a new lower level. Stock splits, through the issuance of additional shares to current holders, decrease the stock price. And here's another plus: At a lower price, the stock becomes more accessible to a broader range of investors.
