Share splits are a strategy employed by publicly traded companies to adjust the price of their stock, making it more affordable and attractive to a broader base of potential investors. While a share split does not inherently change the value of the company, this financial maneuver can have various implications for stock performance.
What is a Share Split?
A share split occurs when a company increases the number of its outstanding shares by issuing more shares to current shareholders. The most common splits are 2-for-1 or 3-for-1, meaning that a shareholder...