I'm considering investing in a stock, but I noticed that it recently underwent a stock split. I'm wondering if it's a smart decision to purchase shares of this stock now, after the split has occurred.
6 answers
EthereumEmpire
Wed Oct 30 2024
The primary effect of a stock split is to reduce the per-share price of the stock.
KDramaLegend
Wed Oct 30 2024
Despite this reduction in price, the overall valuation of the company remains unchanged.
ZenHarmony
Wed Oct 30 2024
This is because the number of shares increases while the total market capitalization stays the same.
Daniela
Wed Oct 30 2024
A stock split is a corporate action that doesn't alter the fundamental aspects of a company or its stock.
Martina
Wed Oct 30 2024
Investors should note that a stock split doesn't necessarily indicate the future performance of the stock.