Nvda split 2021 date6/11/2023 Your actual equity position didn’t change, but the share price is now divided by four. After a 4-to-1 stock split, you’d own 400 shares of XYZ at a share price of $250. Let’s say last week you owned 100 shares of Stock XYZ at a share price of $1,000. In other words, it divides its share price while granting shareholders more shares. This is why a company may choose to split its stock. Traders and investors are more likely to buy a stock trading for $500 than a stock trading for $2,500 - even if the market caps are exactly the same. There’s a psychological component to share prices. This is where a stock split could come into play… Think about how many retail traders have accounts with a total value between $1,000 and $5,000 … How will they reasonably invest in, say, Amazon? They can only buy a single share. It dissuades potential investors and traders from buying the stock. When shares cost this much, the high price can serve as a barrier to entry. That’s fine until a share price becomes overly expensive, usually around $1,000 per share. As a company and its market cap expand, its underlying stock’s share price grows with it.
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