You wind up with more bills in your wallet, but the intrinsic value of those bills is the same. A Stock Split Does Not Affect a Stock’s Intrinsic Valueįor investors a stock split is sort of like asking somebody to give you change for a $20 bill. This article will also explain the idea of a reverse stock split and the effect of a stock split on investors looking to short sell a stock. This article will help investors understand stock splits, why companies issue them, and whether or not they offer value to shareholders. For example, in a 2-for-1 split, a shareholder that held 1,000 shares priced at $100 would have 2,000 shares with each share priced at $50 after the split. As the number of available shares change, the market capitalization of the company remains the same and dilution does not occur. Stock splits give investors more shares of a stock without increasing the intrinsic value of the stockĪ stock split is an adjustment in the total number of available shares in a publicly-traded company. 7 Stocks to Buy to Outrun Rising Interest Rates.7 Sports Betting Stocks to Buy for Their Long-Term Possibilities.7 Water Stocks to Buy as the World Dries Up.7 Solar Stocks Leading the Clean Energy Boom.7 Railroad Stocks to Keep Your Portfolio Chugging Along.7 Agricultural Stocks to Buy to Keep Your Portfolio Well Fed.7 Streaming Stocks that Will Stand up to Streaming Fatigue.7 Cash Rich Stocks That Offer Safety in Any Market.7 Small-Cap Stocks That Could Rocket Higher in 2023.7 Most Overhyped Penny Stocks to Sell Now.3 Reasons Another Shoe May Drop for Skechers.Despite Financials, Twiliio is One To Watch.3 Old School Automakers Making Big EV Strides.Can Activision Blizzard Rally Into Year End?.Two EV Stocks That Could Rally Into Year-End.The Cheesecake Factory Shows You Can Have It and Eat It Too.

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