Stock splits are much less common than they were a couple of decades ago. Yet, the past year has seen a number of notable ones, including from Broadcom, Chipotle Mexican Grill, Sony, and Walmart. So why the renewed interest in stock splits? Do they even matter?
Splitting a stock makes shares more liquid, meaning more easily traded, and therefore increases trading volume. When a company’s share price rises significantly, that company may want to make shares more attractive to retail investors.
Companies may also announce stock splits for media attention. In fact, companies do often see a boost in the share price after making such an announcement, due to increased investor excitement.
Here are some notable stock splits coming in the next few weeks to keep an eye on:
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