1 Unstoppable Stock-Split Stock to Buy Before It Joins Nvidia, Alphabet, Microsoft, and Apple in the $3 Trillion Club
A high-quality company will typically create tremendous long-term value, sending its stock price soaring into the hundreds or even thousands of dollars. As a result, investors with small portfolios could find themselves priced out of owning one full share, which is why the company might decide to execute a stock split.
Stock splits work by increasing the number of shares in circulation, which reduces the price per share by a proportionate amount. The adjustment is entirely cosmetic, so it doesn’t change the value of the underlying company. Facebook parent Meta Platforms (NASDAQ: META) just announced it will execute the equivalent of a 2-for-1 split by introducing a new class of shares.
Investors who currently own a single Meta Class A share worth $650 will end up with two shares after the record date: one Class A share with voting rights, and one Class C share with no voting rights, presumably worth $325 each. The prices I’ve described are merely hypothetical, because we don’t know where Meta will be trading when the split eventually happens in January 2027.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.