Is Costco Wholesale Planning a Stock Split? 1 Thing Management Might Be Waiting For
Stock splits often happen when a Stock's price gets high enough that management feels inclined to lower it to make it more accessible to a wider pool of investors. If a Stock is trading at hundreds or thousands of dollars, investors who aren't able to buy fractional shares may not be able to own the Stock. But with Stock splits, companies can reduce their share prices, thus making them a useful tool for that purpose.
One prime stock split possibility that investors may be wondering about is Costco Wholesale (NASDAQ: COST). At around $730 per share, it's one of the more expensive stocks on the S 500. It may only be a matter of time before management decides to deploy a stock split. Here's what it could take.
A company doesn't need to deploy a stock split. It's an optional move that ultimately means nothing for investors who own the stock -- they'll just end up owning more shares at a lower average price, but their overall investment value will remain unchanged.
Source Fool.com
