What Are Stock Splits?

September 20th, 2008

Stock splits is an event that happens in the stock market game. It generally happens by a company to reward their shareholders. And it usually happens when the stock price raises to a high price rather quickly. Stocks splits can occur in a number of ways, the most common is a 2-1 split where for every stock that is out becomes two. So the stocks outstanding doubles. Usually after stock splits, the stock price rises because the market attributes that to success.

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