Generally, stock splits mean that good things are happening for the company and investors are happy. Enterprise software company (NYSE: NOW) fits that description. The stock has appreciated over 3,400% since the company went public in 2012, miles beyond what the S 500 has done over the same time. Now trading at more than $880 per share, this market beater could be ripe for its first-ever stock split.

Investors generally cheer stock splits, and they can attract new buyers to the stock. Here is why ServiceNow could soon split its stock and whether investors should buy before it might happen.

At the surface level, stock splits lower a company's share price by proportionately increasing the number of shares.

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Source Fool.com