Stock Split 2020-05-19 08:00:00

Stock Split

Stock splits might be seen as marketing techniques. When the price of a stock rises to high, it can become unattractive to investors. A lower price stock allows investors to hold a large number of shares. With a high priced stock, investors may be able to hold only a few shares. When a company splits its stock, it creates more shares at a lower price. However, the value of those shares is the same. For example, a $500 stock that splits 1-2 means the price will drop to $250, and each shareholder will have two shares at $250 instead of one at $500. Stocks can also do reverse splits. A $50 stock that splits 2-1 means that for every two shares, investors get one at $100.

 


Download The Guidebook To IPWM

Another Way To Own Investment Properties

Learn More About How Investment Property Wealth Management works.

Another Way To Own Investment Properties

Download The Guidebook To IPWM Investment Property Wealth Management
Download eBook