What is a Stock Split and Why Do Stocks Split?

Published on October 24, 2021

Popular guide related to actual Penny Stocks, Buy Cheap Stocks, Trading Penny Stocks, and When Can Stocks Split, What is a Stock Split and Why Do Stocks Split?.

Stock Splits Simplified:
-number of shares before split = 100 at $50/share
-Split = 2/1
-number of shares after split = 200 at $25/share
-In order to own the same portion of the company, the stock price goes down to $25/share
-100 shares at $50/share = 200 shares at $25/share
-The value is the same, only the share price changes
-Splits can come in different denominations (e.g. 2/1, 3/1, 5/1, 3/2, etc)

Why do Companies Do This?
-To allow new investors to come in at a lower stock price
-To re-balance their shares

#stocksplit #splitstocks #stocks #stockprice

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When Can Stocks Split

When Can Stocks Split, What is a Stock Split and Why Do Stocks Split?.

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