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Message: Re: share splitting
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Jul 02, 2011 07:26PM
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Jul 02, 2011 07:40PM
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Jul 02, 2011 07:45PM

I'm not sure where the notion comes from that the company at this time will do a stock split? Is it necessary at this time?

What Does Stock Split Mean
A corporate action in which a company's existing shares are divided into multiple shares. Although the number of shares outstanding increases by a specific multiple, the total dollar value of the shares remains the same compared to pre-split amounts, because no real value has been added as a result of the split.

In the U.K., a stock split is referred to as a "scrip issue", "bonus issue", "capitalization issue" or "free issue".
Investopedia explains Stock Split
For example, in a 2-for-1 split, each stockholder receives an additional share for each share he or she holds.

One reason as to why stock splits are performed is that a company's share price has grown so high that to many investors, the shares are too expensive to buy in round lots.

For example, if a XYZ Corp.'s shares were worth $1,000 each, investors would need to purchase $100,000 in order to own 100 shares. If each share was worth $10, investors would only need to pay $1,000 to own 100 shares.
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Jul 02, 2011 07:52PM
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Jul 02, 2011 08:15PM
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Jul 02, 2011 08:27PM
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Jul 04, 2011 03:01AM
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