What is a stock split? Kevin explains the meaning of a stock split and how investors can leverage that and grow their wealth.

He also shares some insights on the big companies offering stock splits soon and how to choose the best for your investment. Tune in to learn more on this and other exciting topics!
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A stock split is a corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares. Typically, companies perform stock splits when their share price becomes too high, and they want to make it more affordable for individual investors to buy their stock. A 2-for-1 stock split, for example, would turn each share of a $120 stock into two shares worth $60 each.

Investors see stock splits as an endorsement of the value of a company's stock. The higher the share price climbs, the less affordable it is for individual investors (who generally have limited amounts to invest), and the harder it may be to find buyers when they want to sell later. By increasing the number of shares outstanding, companies hope to attract more buyers and sellers of their stock.

Disclosure and Disclaimer: All information given is for general information and entertainment purposes only, and does not constitute professional financial advice. Links may contain affiliates. When you buy through one of our links we will receive a commission. This is at no cost to you. We are a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to www.amazon.com.

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