Stock Split

Stock Split

A stock split 🖖 is when a company increases the number of available outstanding shares. Keep in mind, the value of the company stays the same as the price of the shares split too.

Stock splits are a smart way to get more investors on board and increase liquidity quickly. Most often, this is done when share prices are high. Less people are likely to buy shares that are priced at $1,000 each.

There are a whole lot of legal procedures companies have to adhere to before a stock split.

Disclaimer

The content on this page is for information purposes only, it does not expressly or implicitly provide financial, legal, tax, or investment advice or recommendations, the opinions are those of the author. Individual investors should make their own decision when investing as investing in securities carries risk and it’s the individual investor’s responsibility to assess the risk before making any decision. It’s the investor’s sole responsibility to make their own decisions and determine the appropriateness of an investment or strategy based on their own personal investment objectives, financial circumstances, and risk tolerance. Past performance is no guarantee of future results. Historical returns, expected returns, and probability projections are provided for informational and illustrative purposes and may not reflect actual future performance. Any articles, daily news, analysis, and/or other information contained in the blog should not be relied upon for investment purposes. The content provided is neither an offer to sell nor purchase any security. Opinions, news, research, analysis, prices, or other information contained on our Blog, or emailed to you, are provided as general market commentary. InvestSky does not warrant that the information is accurate, reliable, or complete. Any third-party information provided does not reflect the views of InvestSky. InvestSky shall not be liable for any losses arising directly or indirectly from misuse of information. Each decision as to whether a self-directed investment is appropriate or proper is an independent decision by the reader. All investing is subject to risk, including the possible loss of the money invested.

Was this article helpful? Share it!

Ready to start investing?

Join InvestSky and get a stock on us.
Join

GET THE APP