Stock Split Watch: Is Walt Disney Next?
When a company executes a stock split, it doesn't fundamentally change anything for the business or for investors in that business -- at least not in the practical sense. Some companies have traditionally announced splits to attract retail investors that might feel a high share price is out of reach for the small amounts they are able to invest.
But many brokerages now allow trading in fractional shares, which makes that situation moot, as investors can trade in any small dollar amount, regardless of how high share prices go. However, there can still be a psychological effect from stock split announcements. That might be something Walt Disney (NYSE: DIS) management should consider to help get its message to investors.
Image source: Walt Disney.
Source Fool.com
