Is a stock split good or bad for investors?
But when you’re an investor, splitting can be a good thing.
Stock splits are a way a company’s board of directors can increase the number of shares outstanding while lowering the share price.
What happens if a stock splits?
A stock split is a corporate action that increases the number of the corporation’s outstanding shares by dividing each share, which in turn diminishes its price. The stock’s market capitalization, however, remains the same, just like the value of the $100 bill does not change if it is exchanged for two $50s.
Will Microsoft stock split?
Microsoft stock splits
A.The Board of Directors makes the decision for any stock split. The most current split was a 2-for-1 common stock split announced on January 16, 2003. The stock will commence trading at the new split price February 18, 2003. This was our ninth stock split since going public March 13, 1986.
How do you know if a stock has split?
If the number of shares has changed, but the value hasn’t, the stock has split. If the number of shares has not changed, but the value has, the price fluctuation is most likely not the result of a stock split. Check the headlines. Another way to check if a stock has split is to scour the financial news.