The process also gives employees more flexibility in their employee stock-based compensation packages. ![]() For instance, if the firm sees more growth in its future, splitting shares allows that growth to show up in stock prices. ![]() But on Monday, following the firm’s 20-for-1 split, shares opened around $112 apiece.Ĭompanies may split stock for other reasons, too. Last Friday, shares closed over $2,200 apiece – well out of the price range of many average investors. At the same time, this increases liquidity, as shares trade more freely when more investors can access them. As tech demand soared, so did share prices, leaving many everyday investors unable to buy shares of companies like Apple, Alphabet and Nvidia.īy splitting shares when prices rise, these companies make individual shares more affordable for retail investors. We saw this happen with several major tech stocks during the pandemic.
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