Have you ever experienced a stock split? Did it change your ownership position with the company? Did it enhance the stock price? Why would a company do a stock split? A reverse stock split?© BrainMass Inc. brainmass.com March 4, 2021, 6:01 pm ad1c9bdddf
Have you ever experienced a stock split? Did it change your ownership position with the company? Did it enhance the stock price? Why would a company do a stock split? A reverse stock split?
Stock splits occur all the time. Some recent examples: WEST PHARMACEUTICAL SERVICES, INC., CATHAY GENERAL BANCORP, STIFEL FINANCIAL CORP. (You can give your own example)
A stock split occurs when a publicly held company distributes more stock to holders of an existing stock. For example, with a 2-for-1 split, a company will issue one additional share for every share that a holder has. Stock splits are similar to stock dividends in that the shareholder owns more shares afterwards. However, it is different in magnitude and accounting treatment. With a stock split all the old shares are extinguished and new shares are issued with a new par value. Typically, in a stock split the ...
The solution discusses with the help of examples Stock Split and Reverse Stock Split.