Jim Cramer explains why stock splits can bring gains
- Jim Cramer discussed $NVIDIA (NVDA.US)$'s recent 10-for-1 stock split and its potential benefits.
- Stock splits don’t change the total value of an investment but make individual shares cheaper.
- For example, Nvidia’s shares went from $1,139.01 each to $113.90 after the split.
- Stock splits make shares more accessible to regular investors by lowering the price per share.
- Companies often split stock to make shares with high price tags more appealing.
- While stock splits don’t guarantee gains, share prices often rise after such announcements.
- Examples of companies that saw share prices rise after splits include Chipotle, $Walmart (WMT.US)$ , Cintas, and Lam Research.
- Despite not creating value, stock splits matter because they appeal to investors in a non-rational market.
- Stock splits don’t change the total value of an investment but make individual shares cheaper.
- For example, Nvidia’s shares went from $1,139.01 each to $113.90 after the split.
- Stock splits make shares more accessible to regular investors by lowering the price per share.
- Companies often split stock to make shares with high price tags more appealing.
- While stock splits don’t guarantee gains, share prices often rise after such announcements.
- Examples of companies that saw share prices rise after splits include Chipotle, $Walmart (WMT.US)$ , Cintas, and Lam Research.
- Despite not creating value, stock splits matter because they appeal to investors in a non-rational market.
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73372627 : Yes I agree. But in the same time, an valuable stock split help the companies on developing. I agree could be an risky move from a X company, but till now all valuable companies perform very nice. In the history very few fell.