1 Stock-Split Stock That's a Surefire February Buy and 1 to Avoid Like the Plague
There's no sugarcoating the fact that both new and tenured investors were taken for quite the ride last year. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all fell into a bear market and delivered their worst returns since 2008.
Although it was, at times, difficult to find bright spots, investors did see a few rays of sunshine from companies enacting stock splits in 2022.
A stock split allows a publicly traded company to alter its share price and outstanding share count without having any impact on its market cap or operations. Forward stock splits reduce a company's share price while increasing its outstanding share count by the same factor. Meanwhile, reverse stock splits are intended to increase a company's share price while lowering its outstanding share count by the same magnitude.
Source Fool.com
