Saw this news item and wondering
a. what are stock splits?
b. how do splits actually help a company? i.e. Does it make them more money?
In: 0
a reverse stock split allows a company to dilute the stock holders by returning stock to their treasury and allowing them to sell their stock or issuing it to employees. It’s a way to raise money for the company at the expense of share holders. It also keeps their price at a certain threshold to avoid being delisted
a stock split allows their stock to be more affordable if someone wants to buy but can’t afford the share price. It becomes more attractive as an investment.
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