A stock split is a corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares.
Typically, companies perform stock splits when their share price becomes too high, and they want to make it more affordable for individual investors to buy their stock. A 2-for-1 stock split, for example, would turn each share of a $120 stock into two shares worth $60 each.
Investors see stock splits as an endorsement of the value of a company’s stock. The higher the share price climbs, the less affordable it is for individual investors (who generally have limited amounts to invest), and the harder it may be to find buyers when they want to sell later.
By increasing the number of shares outstanding, companies hope to attract more buyers and sellers of their stock.
In this episode, we are joined by Kevin Matthews, a former Financial Advisor and best-selling author. His job is to make investing simple. Kevin explains the meaning of a stock split and how investors like you can leverage that and grow their wealth.
He also shares some insights on the big companies offering stock splits soon and how to choose the best for your investment. Tune in to learn more on this and other exciting topics!
What You Will Learn:
- The meaning of stock split
- The recent companies doing stock split
- How to evaluate whether the stock split is an opportunity for you as an investor
- How to get comfortable with the stock market
- The upcoming Tesla stock split
- About Alphabet and the twenty to one stock split
- The exact time to take advantage of the stock split
- The go-to apps for the fractional share game
- The Shopify stock split
- The investor’s toolkit that Kevin has created
- The things you should know when considering a stock split
- About the book: From Burning to Blueprint
Resources Mentioned:
- Kevin’s Investor’s Toolkit
- From Burning to Blueprint: Rebuilding Black Wall Street After a Century of Silence by Kevin L. Matthews II
- Debt Freedom Blueprint
Connect with Kevin L. Matthews II:
- Website: https://www.buildingbread.com/
- Facebook: https://www.facebook.com/BuildingBread
- Instagram: https://www.instagram.com/buildingbread/
- YouTube: shorturl.at/kJMR8
