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
Stock splits are pretty simple, the company divides every stock into multiples. If you owned 10 shares, and the stock splits 10/1, you will own 100 shares.
It’s entirely a public perception thing. Companies will split their stock when they think their stock price is too “expensive” or reverse split if they think their stock price is too “cheap”, while not affecting any other aspect of the company’s finances.
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