2 Stock-Split Stocks to Buy on the Dip
Companies that issue stock splits have become quite popular with investors over the last year. But it's important to understand what a stock split achieves and why companies issue them.
The most common type of split is a forward stock split, where a company increases its total share count while reducing the share price. The aim is to make each share more affordable for investors, but it's not free money. You own more shares, but the value of your investment remains the same due to the lower share price.
Still, companies that split their shares are usually the high-growth variety, which is why it can often be rewarding to seek them out. It's not surprising that a few of the stocks that have split their shares this year are involved in high-growth markets like software, cryptocurrency, and semiconductor solutions. The following two stocks are currently trading off their highs but could be poised for more gains.
Source Fool.com
