By Investment U Research Team Many investors, especially beginning investors, are surprised to receive a letter in the mail telling them of an impending stock split. The first question is usually, what is a stock split? The second question naturally follows: is a stock split good?
If you’ve received such a letter or hear rumblings about a stock split pertaining to a security in your portfolio, it’s important to know what’s happening.
What is a stock split?
A stock split is aptly-named, because it involves a company splitting its existing shares. Usually, stock splits occur at a 1:2 ratio, where every existing share becomes two. However, stock splits …read more
