Why Do Stocks Split?

By reducing share prices, splits can expand retail investor interest and trading activity in shares.

Splits allow shares to retreat from overly high levels or return from overly depleted prices.

Splits can prevent stocks from violating exchange minimum share price rules.

Reducing share prices through splits enables more investors to participate and buy round lots.

Affordable post-split share prices motivate more analysts to cover the company.

Stock splits provide a fresh start for technical analysis metrics like moving averages.

Companies may split shares based on confidence in sustaining rapid, long-term growth.

Splits offer a symbolic, morale-boosting milestone by highlighting past share growth.

More split-adjusted shares give companies added flexibility for compensation and acquisitions.