Search results
Results from the WOW.Com Content Network
The free market dictates the price of every publicly traded company’s stock. All share prices exist at the intersection of what the seller is willing to accept and what the buyer is willing to pay.
The main effect of stock splits is an increase in the liquidity of a stock: [3] there are more buyers and sellers for 10 shares at $10 than 1 share at $100. Some companies avoid a stock split to obtain the opposite strategy: by refusing to split the stock and keeping the price high, they reduce trading volume.
What is a stock split? A stock split takes place when a company increases the number of shares issued to current shareholders, thereby decreasing the value of individual shares.
A stock split is neither good nor bad, and long-term investors should probably be indifferent to them. They have no impact on the value of your investment or the value of the company.
For existing shareholders, a stock split doesn’t change the total value of their holdings. They simply own more shares at a lower price per share. It won’t make them richer or poorer overnight.
The "reverse stock split" appellation is a reference to the more common stock split in which shares are effectively divided to form a larger number of proportionally less valuable shares. New shares are typically issued in a simple ratio, e.g. 1 new share for 2 old shares, 3 for 4, etc. A reverse split is the opposite of a stock split.
Ultimately, a stock split makes a stock more liquid. In other words, it makes shares easier to buy and sell. More shares at a smaller price means investors can invest in the company without having ...
Economists commonly use the term recession to mean either a period of two successive calendar quarters each having negative growth [clarification needed] of real gross domestic product [1] [2] [3] —that is, of the total amount of goods and services produced within a country—or that provided by the National Bureau of Economic Research (NBER): "...a significant decline in economic activity ...