A stock split is when a company divides its existing shares into multiple new shares to make the stock more affordable for investors while keeping the total market value of the company unchanged.
How it Works:
• Price: The price of the stock is reduced after the split.
• Units (Shares): The number of shares you own increases proportionally.
Example 1: 2-for-1 Stock Split
• Before the split:
• You own 1 share priced at $100.
• After the split:
• Your 1 share becomes 2 shares, but the price is adjusted to $50 per share.
• Total value = 2 shares × $50 = $100 (no change in value).
Why Companies Do This:
• Attract More Investors: Lower prices make the stock accessible to smaller investors.
• Increase Liquidity: More shares mean easier trading in the market.
A stock split does not affect the total value of your investment, only the number of shares and the price per share.
104389051 : and Moomoo said after checking no stock split haha
LouisT OP 104389051 : Cos it is 1 for 1 Dividend, not official stock split
105135685 : then when is best time to buy after split. Will the previous share owner get more share now and start to sell partial in the market to cash out and caused to price drop
LouisT OP 105135685 : There is no best time 1, if u buy before ex date, u just sit down and wait for it split and deposit for u. Or some investor may only buy after split. Nothing much different. Some buy earlier because there is chance that after exdate, the price may raise. So they buy earlier. Since the price now drop, it show buy later is better.