Stock Split Watch: Costco Next?
Several big companies are announcing stock splits, including Tesla, Amazon, Alphabet, and Shopify. Investors seem to love them, and they certainly generate headlines for the companies doing them.
One company that could soon join the ranks of recent splits is big-box retailer Costco Wholesale (NASDAQ: COST), which hasn't split its stock since 2000. I'll explain what stock splits do and don't do, and look at why a stock split could make sense for Costco.
Stock splits are exactly what they sound like: A company splits its stock to create more, less costly shares. Suppose you are a company with 100 shares trading at $10 each. Your total company stock would be worth $1,000 (100 x $10).
Source Fool.com
