What is Stocks Split ?
by: Romel Diaz
April. 23, 2010 @ 7:28 am
Posted In: Stocks
When the stock market soars, it's time to watch for the stock splits. A company subdivides its stock to keep it attractive to investors. They generally prefer shares. If the stock rises, then the company may issue three new shares in exchange for two old shares. That usually brings the price per share down .
Firms most often declare stock splits when their earnings are strong. Splits thus can be good news for shareholders, bringing increased dividends and favorable growth prospects. So it may be wise to ask a broker for his recommendations of stocks that seem likely to split.
by: Romel Diaz
April. 23, 2010 @ 7:28 am
Posted In: Stocks
When the stock market soars, it's time to watch for the stock splits. A company subdivides its stock to keep it attractive to investors. They generally prefer shares. If the stock rises, then the company may issue three new shares in exchange for two old shares. That usually brings the price per share down .
Firms most often declare stock splits when their earnings are strong. Splits thus can be good news for shareholders, bringing increased dividends and favorable growth prospects. So it may be wise to ask a broker for his recommendations of stocks that seem likely to split.
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