Move Over, Nvidia and Broadcom: Wall Street's 2 Newest Stock-Split Stocks Are Taking Center Stage This Week
Although artificial intelligence (AI) has been the talk of Wall Street for much of the last two years, the euphoria surrounding companies enacting stock splits has been an equally important catalyst for the stock market in 2024.
A stock split is a tool publicly traded companies have at their disposal that allows them to cosmetically alter their share price and outstanding share count by the same magnitude. It's cosmetic in the sense that stock splits have no impact on a company's market cap or its underlying operating performance.
There are two classes of stock splits, one of which investors gravitate to far more than the other. Reverse-stock splits have a goal of increasing a company's share price, often to ensure continued listing on a major stock exchange. Comparatively, forward-stock splits reduce a company's share price, usually with the purpose of making shares more nominally affordable for retail investors and/or employees.
Source Fool.com
