What happens when a stock splits?

Answer 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 »

Top Q&A For: What happens when a stock splits

What happens when an atom splits?

Nuclear fission occurs if an atom splits. Fission produces gamma rays, which power plants use as energy. Fission is also used to create nuclear bombs. The splitting of atoms usually occurs in a con... Read More »

When do companies record stock splits?

Companies record stock splits when investors believe that shares are too expensive to buy in quantity. A stock split happens when companies split existing shares into multiple shares. The total dol... Read More »

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 »