What Is a Stock Split? Forget the Hype: Stock Splits Don't Make Companies More Valuable.
Long-term investors should ignore stock splits, but they have some benefits for traders.
Overview
I will never understand the excitement of stock splits. It's just taking the same-sized pie and cutting it into smaller pieces. There is a hidden value to stock splits that benefits some traders, but the long-term picture remains the same.
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A stock split is when a company increases the total number of shares in a non-dilutive manner. If a company doubles its total shares outstanding, its stock price will simultaneously be cut in half.
Details
Source
Originally published at www.fool.com.
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