Who Is Splitting Stocks?

A stock split or stock divide increases the number of shares in a company. A stock split causes a decrease of market price of individual shares, not causing a change of total market capitalization of the company. Stock dilution does not occur.

Is stock splitting good for investors?

A stock split doesn't make investors rich. In fact, the company's market capitalization, equal to shares outstanding multiplied by the price per share, isn't affected by a stock split. ... Yes, you own more shares, but they're each worth less. It's basically a draw, and the value of your investment won't change.

Do stocks go up after a split?

Some companies regularly split their stock. ... Although the intrinsic value of the stock is not changed by a forward split, investor excitement often drives the stock price up after the split is announced, and sometimes the stock rises further in post-split trading.