Talk:Stock split

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Finance & Investment High‑importance

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Comments

What type of Stockholders' cost could be reduced from initiating a reverse split?

Why do stocks split? Just to allow a larger number of total shareholders?

What are the citations in the text supposed to be pointing towards? Hominidx (talk) 23:31, 19 October 2008 (UTC)[reply]

There should be something here about dividend policy as it relates to stock splits. Obviously, there is no necessary impact. A company that had been paying $1 per share per quarter could simply, post-split, pay $0.50 per share per quarter. But a stock split might preface an effective dividend increase, and there seems to be a psychological effect, a belief among shareholders that it will, that has consequences for pricing. See for example the textbook by Groppelli and Nikbakht, available through Google Books, which speaks to this point on p. 272. --Christofurio (talk) 14:24, 23 September 2010 (UTC)[reply]

But what is it?

This page does a good job explaining a lot about stock splits, but never actually bothers to explain what it is.

From context, I assume that a 2-for-1 stock split means "everybody owns twice as many shares, which are all worth half as much," but I don't have any way of verifying that in this article.

Hppavilion1 (talk) 09:19, 2 February 2022 (UTC)[reply]