Question:

Has anyone ever seen or heard of a stock split where the price is going down?

by Guest45429  |  earlier

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Has anyone ever seen or heard of a stock split where the price is going down?

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  1. I have never heard of a "forward split" in 19 years in this business.

    A stock that splits 2-1 is a "stock split."

    http://en.wikipedia.org/wiki/Stock_split

    When a stock has a split the value or price does NOT go down.

    "For example, if you own 100 shares of a company that trades at $100 a share and it declares a two for one stock split, you will own a total of 200 shares at $50 a share after the split. A stock split has no effect on the value of what shareholders own."

    http://www.sec.gov/answers/stocksplit.ht...

    If the stock falls after a split, is is due to company or market forces, not due to because of the split itself.


  2. yes, it is called a forward split.  One example would be to receive 2 shares for every 1 that you currently have...which doubles the number of shares, but lowers the price by 50%.  Lots and lots of companies have done this.  Some refuse to do so (brk.a for example), but most of the time it makes a stock more marketable to people with les to invest.

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