![]() ![]() That said, many stocks have shown strong performance after a split. If you have a share of stock currently trading at $100 and it splits into four shares at $25 each, it’s the same as having an entire uncut pizza and cutting it into four slices – you still have the same pizza. On the face of it, a stock split shouldn’t really matter – regardless of the current economy. ![]() Stock splits can increase affordability, meaning a broader range of investors may find the stock more attractive – thereby increasing demand. When a board of directors declares a stock split, it’s a vote of confidence that the company’s share value will continue to increase. Look no further than the 5.5% pop in Amazon shares when it announced a 20:1 split after the market close on March 9. Should I Buy A Stock Before It Splits? Investors and companies alike view stock splits as positive events. ![]()
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