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Posted On: 11/25/2018 12:34:40 PM
Post# of 32698
On paper yes but there's a psychological component to this you're not mentioning.
Why do companies do forward splits?...so more people can afford it and buy their stock.
It's called perception. You perceive it to be a better value and the possibility of a larger return to come faster and quicker.
"Forward stock splits can signal to the market that the price of a company's shares is rising, and that the stock therefore might be a good buy. The company also might expect demand for its stock to increase because more investors could afford to purchase its stock after a forward stock split."
Why do companies do forward splits?...so more people can afford it and buy their stock.
It's called perception. You perceive it to be a better value and the possibility of a larger return to come faster and quicker.
"Forward stock splits can signal to the market that the price of a company's shares is rising, and that the stock therefore might be a good buy. The company also might expect demand for its stock to increase because more investors could afford to purchase its stock after a forward stock split."
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