2 Stock-Split Stocks That Have Never Been Cheaper and 1 Value Trap to Avoid Like the Plague
It's been a busy year on Wall Street. Investors have contended with the highest U.S. inflation rate in four decades (9.1% in June 2022), Russia invading Ukraine and throwing a monkey wrench into global oil and gas supply, and the U.S. economy delivering back-to-back quarters of gross domestic product (GDP) declines. Although the U.S. isn't officially in a recession -- an eight-person panel of economists makes that call -- two consecutive quarters of GDP declines is commonly viewed by the investing community as a "technical recession."
Yet in spite of this economic and stock market turmoil, investors have been borderline obsessed with stock-split stocks. A stock split allows a publicly traded company to alter its share price and outstanding share count without impacting its market cap or operations.
A forward stock split can lower a company's share price to make it more nominally affordable for investors without access to fractional-share purchases. A reverse stock split can lift a company's share price to ensure it meets the minimum share-price requirement to remain listed on a major exchange.
Source Fool.com
