Is a Stock Split on the Way for Netflix in 2025?
High-quality companies create a lot of value over the long term. Sometimes, that means their stock price soars into the hundreds or even thousands of dollars, which can make it difficult for retail investors to buy in.
Companies can rectify that with a stock split, which increases the number of shares in circulation and proportionately reduces the price per share. For example, a 10-for-1 split would increase the company's share count 10-fold, and reduce its price per share to one-tenth of what it was previously.
A split is purely a cosmetic maneuver -- it doesn't change the value of the underlying company at all. It's simply designed to make the stock more accessible to smaller investors.
Source Fool.com
