Understanding Stock Splits: Effects on Share Prices and Investments

Stock splits are a common occurrence in the world of investing. They are a way for companies to increase the number of shares outstanding while simultaneously decreasing the price per share. By doing so, stock splits can have several effects on share prices and investments. In this article, we will explore what stock splits are, how they affect share prices, the implications for investors, the benefits and risks of investing in split stocks, and the psychology behind stock splits.