Palo Alto Networks Stock Split: Why It Matters

Network security expert Palo Alto Networks (NASDAQ: PANW) is splitting its stock soon. This is largely a mathematical exercise that makes no real difference to most investors, with a handful of important exceptions. There are two groups of people who will see a real difference after this stock split.

Management made it clear that this is a driving force behind the stock split.

"Because the market price of our stock has increased significantly since our initial public offering, the stock split will enable employees to acquire more whole shares of our stock through equity awards and more easily participate in our employee stock purchase plan," says the official sheet of frequently asked questions for this accounting move.

Continue reading


Source Fool.com