Though there's little doubt Wall Street is enamored with the rise of artificial intelligence (AI), the return of stock-split euphoria has given investors another reason to cheer.

A stock split gives publicly traded companies the ability to alter their share price and outstanding share count by the same factor. Over the last six months, 12 time-tested companies have announced or completed a stock split.

Stock splits can occur in either direction. A reverse split is designed to increase a company's share price, usually with the purpose of ensuring that it continues to meet the minimum listing standards of a major Stock exchange. On the other hand, a forward-Stock split is conducted by companies wanting to reduce their nominal share price. Since forward splits are almost universally undertaken from a position of strength, this is the type of split most investors tend to flock to.

Continue reading

Source Fool.com