Why Do Companies Split Their Stock? Stock Split Good?

Why do companies split their stock?

A company splits their stock because administration has a theoretical ideal price range for the firm’s stock. If the market price of the stock rises higher than the ideal price range, a stock split brings the market price back in line. Also, a decision to split a company’s stock makes the stock more attractive to the public for investing particular stock (small price). Over a period of time, “stock splits” may be good for investors.  And yet, there are no assurances. Many investors think that there will be immediate profits from a stock splits but usually this assumption is false.

Be Sociable, Share!
Tags: , , , ,

Stock Market Basics For Beginners

What Attention Should One Consider Before Investing?

What Attention Should One Consider Before Investing? [ad name="Banner 468 x 60 Text emage"] Golden rules for new investors Receive written docs describing the investment View and understand this kind of documents Confirm the authenticity of ...…

Post Office Monthly Revenue Plan

Post Office Monthly Revenue Plan Post Office Monthly Revenue Plan is known as a low risk saving tool, Post Office scheme can be availed by any post office. It offers ...…

Initial Public Offer

Initial Public Offer Initial Public Offer. The initial sale of share by a firm for the public. The commonest reason for a firm to start an IPO is ...…

Invest Regularly

Invest Regularly Invest Regularly : Improve the practice of adding to your recurring deposit and SIP (systematic investment plan of mutual fund) / deferred annuity ...…

Auction Market

Auction Market An auction  market is a good example of buying and selling of financial instruments (stocks) which happens on the floor of the exchange, such as ...…

Indian Share Tips

NSE Investment Site

Market Update

Share Guide

Designed by VMV
web
analytics