Often times you’ll here a company announce a stock split. If you invest in stocks long enough, you’ll eventually experience it yourself.
It’s not limited to stocks either. This can happen to ETF and mutual fund shares too. But how does it affect your shares?
What Is A Stock Split?
When a company announces a split it’s changing the number of outstanding shares and adjusting the stock price accordingly. In a normal stock split the number of shares increases while the stock price decreases. The price change is equal to the market value divided by the new number of shares. Continue Reading…