What are the Benefits of Reverse Stock Splits?

Answer A stock split occurs when a company increases the number of outstanding shares and decreases the price of each share by that factor. For example, if you own 1,000 shares of a company trading at $10... Read More »

Top Q&A For: What are the Benefits of Reverse Stock Splits

The Difference Between Stock Splits & Stock Dividends?

Dividends and splits are two very important concepts that stock investors must understand to be successful. Dividends add to the total return that an investor earns while holding a stock. Splits, a... Read More »

How do stock splits affect stock options?

Companies often grant stock options to employees as a reward for good work and to retain good people. A stock option is a "right" to buy the company's stock at a certain price. It is not an obligat... Read More »

What happens when a stock splits?

Stock splits increase the number of outstanding shares, decreasing the price per share. The decrease in price is proportional to the increase in number of shares, so that the total value of issued ... Read More »

Common Stock Splits?

Common stock is a highly volatile equity instrument. Sometimes the price of the common stock for a company reaches levels that management considers excessive. For various reasons, the company may d... Read More »