Understanding Stock Splits and Reverse Stock Splits

Understanding stock splits is key to understanding how shares of a company work. When a company announces a split, more shares become available for trading; however, your overall investment value remains the same. Similarly, if you owned 1000 shares prior to a stock split, after it occurs you’d still hold exactly that number afterward either through forward or reverse splits. What is a stock split? Just like cutting up a pizza into slices, a stock…

"Understanding Stock Splits and Reverse Stock Splits"