One of Wall Street's Hottest Stock-Split Stocks, Up Nearly 300% in 3 Years, Is Joining the S&P 500 Today

For much of the last 30 years, investors have had a next-big-thing innovation to captivate their attention. But in rare instances, two or more hyped trends can coexist. Though the rise of artificial intelligence (AI) is the primary headline-grabber at the moment, investor euphoria surrounding stock splits in high-profile companies comes in a close second.A stock split is an event that allows a publicly traded company to cosmetically adjust its share price and outstanding share count by the same factor. The "cosmetic" aspect of these changes has to do with stock splits having no effect on a company's market cap or its underlying operations.But although these changes are superficial, they're often viewed very differently by investors on Wall Street. Reverse splits, which are designed to increase a company's share price, are typically viewed as a situation to avoid by investors. Businesses that need to increase their share price are often doing so to avoid delisting from a major stock exchange and may be operating from a position of weakness.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool