Tech Sell-Off: 1 Stock-Split Stock You'll Regret Not Buying on the Dip
The Nasdaq-100 technology index is firmly in bear market territory right now, with a loss of 25% for the year so far, even despite staging a convincing rebound over the last two months. It's a tricky environment for investors to navigate, but investing in quality companies can offer the best chance of earning a return when the broader market recovers -- and eventually, it will.
Many companies are trying to create additional value for their investors during this downturn. Increasing dividend payouts and introducing share buyback plans to return money to shareholders are two popular moves, and some companies are even conducting stock splits. A stock split is, simply put, designed to reduce the company's share price. And while it doesn't add any value to the business itself, it makes the stock more accessible to smaller investors, which can attract new buyers who may not have been willing or able to buy shares at their previous price tag.
Cybersecurity giant Palo Alto Networks (NASDAQ: PANW) is set to execute a 3-for-1 split on Sept. 13 that, if it happened at the time of this writing, it would cut its stock price from $557.11 to $185.70 by increasing the number of shares in circulation threefold.
Source Fool.com
