Stock-Split Watch: Is Meta Platforms Next?
Stock splits get a lot of attention from investors, and it's understandable why.
While they don't do anything to fundamentally change the value of the stock, they do lower the share price, which makes the stock more attractive to retail investors. They also act as a milestone for a stock's growth as they effectively reset the stock price for further growth.
There's also some evidence that stocks outperform over the year following the stock split, according to research from Bank of America. That may be because stocks tend to be doing well when they split their shares as it's a result of significant gains, and because companies choose when to split their shares. It's unlikely management would issue a split if it thought there were a chance of a significant pullback in the stock.
Source Fool.com
