Short-term movements in US stocks are always elusive, and when market volatility increases, especially during downturns, investors tend to seek stability from sector leaders who have historically outperformed the S&P 500 stock price index. FAANG stocks have been supported by investors for many years, but companies that carry out stock splits tend to attract attention during periods of high uncertainty.
A stock split is understood as an event where a company adjusts the stock price and number of issued shares at the same ratio, and it is a cosmetic phenomenon that does not have a significant impact on the total market value or performance of a company.
There are two types of stock splits: forward splits and reverse splits. A sequential stock split lowers the nominal stock price of an enterprise and makes it easier for individual investors who cannot purchase fractional shares to buy them. Conversely, the purpose of a stock merger (reverse split) is to raise a company's stock price so that it satisfies minimum listing continuity standards on major stock exchanges.
There are also cases where stock mergers (reverse splits) are successful, but most investors are paying attention to companies that carry out forward splits. Such companies usually surpass their peers in innovation and execution, and are expected to outperform over the long term...