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

Public Provident Fund

Public Provident Fund Public Provident Fund: long-term savings device which has a maturity period of 15 yrs and interest payable at 8 percent per year compounded yearly. A ...…

Average

Average A share market average is known as a mathematical method of reporting the composite difference in prices of the shares that the average includes. Each and ...…

What Is Face Value Of A Share And Debenture?

What Is Face Value Of A Share And Debenture? stated value given to a security by the company. For stocks, it's the original price of the share shown on the certificates for bonds, it's ...…

Meaning For Book Building Process

Meaning For Book Building Process Book Building is fundamentally a procedure utilized in IPOs for effective price discovery. It's a method where, during the time period for which the initial ...…

Bombay Stock Exchange Of India (BSE)

Bombay Stock Exchange Of India (BSE) Bombay Exchange Sensitive Index ( SENSEX) - the benchmark index of the Bombay Stock Exchange (BSE)  also called the "BSE 30", is a widely used ...…

Indian Share Tips

NSE Investment Site

Market Update

Share Guide

Designed by VMV
web
analytics