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I feel like you're confusing a stock split with a stock offering. A stock split is when all share holders get 5 shares for every 1 they had (or a 7:1, or even 2:1). If I have 10% of a company with 10,000 shares, I'll still have 10% equity of the company with my (now) 70,000 shares.
Stock splits are typically a precursor to dividend (or increase in dividends). I don't remember the exact study but the price of a stock goes up after a split because the market takes the split as a "positive signal" for dividend increase.
Before, you had 100 shares at $250, or $25000. After, you have 500 shares at $50 - or $25000. But now it's a lot easier for other retail investors to throw in $5000 and buy a board lot themselves. So, naively, one might think the stock split is bullish for the stock.
My understanding is that if I buy 20 shares at around 120, OR if I buy a whole stock at full value before the split and it then split 20 - 1, over the long term, each of those 20 shares has the potential to increase back to its full value.
9 sie 2022 · The 3-for-1 TSLA stock split will occur later this month, leaving investors wondering whether they should buy before or after the split.
5 dni temu · Depending on the election result, you can expect Trump Media stock to move rapidly in one direction or another. The U.S. election is fast approaching and one stock likely to be highly volatile ...
2 dni temu · The second high-flying stock-split stock that smart investors should avoid in November, and arguably well beyond, is AI enterprise analytics software provider MicroStrategy (NASDAQ: MSTR ...
