About the Video
Here’s everything you need to know about Stock Splits.
🔴 𝗦𝘁𝗮𝗿𝘁 𝗜𝗻𝘃𝗲𝘀𝘁𝗶𝗻𝗴 𝘄𝗶𝘁𝗵 𝗜𝗕𝗞𝗥 ➡️ https://www.interactivebrokers.com/mk...
⬇️Timestamps:
0:00 → Intro
1:24 → What is a stock split?
3:15 → Why split – (1) Liquidity
4:30 → Why split – (2) Psychological factors
6:25 → Why split – (3) DJIA inclusion
7:59 → How does a stock split affect you?
9:25 → Conclusion
A stock split is when a company’s board of directors issues more shares of stock to its current shareholders without diluting the value of their stakes. A stock split increases the number of shares outstanding and lowers the individual value of each share. While the number of shares outstanding change, the overall market capitalization of the company and the value of each shareholder’s stake remains the same.
Say you have one share of a company’s stock. If the company opts for a 2-for-1 stock split, the company would grant you an additional share, but each share would be valued at half the amount of the original. After the split, your two shares would be worth the same as the one share you started with.
As fractional investing becomes more popular and widespread, some experts speculate that stock splits will become less important as fractional shares allow you to buy into a company at virtually any price point. But, that’s not even considering the psychological aspect of stock splits because humans love a round number as opposed to fractions, and there’s something about knowing you have the money to buy a full share that motivates many investors.
It’s tempting to want to buy into a pricey stock when it becomes much cheaper to do so; however, eager investors should make sure that stock aligns with their overall investing goals. You shouldn’t jump all in just to say you own Amazon stock, for example, unless it’s something that has long been a part of your portfolio objectives.
❗️USEFUL LINKS❗️
✅Beginner’s Step-By-Step Playlist to Start Investing 👇🏻
• Beginner’s Guide to Investing
✅Moomoo Complete Playlist👇🏻
• Moomoo Trading
✅Full Interactive Brokers Playlist👇🏻
• Interactive Brokers Guide
✅Start Investing in the U.S. market now!👇🏻
• Investing in the US market
✅Exchange-Traded Funds (ETFs) Playlist 👇🏻
• Exchange-Traded Funds (ETFs)
✅🎥All the gears that I use to make my YouTube videos: https://kit.co/Ziet/youtube-gears
Follow Ziet
Disclaimer: This content is provided by a paid Influencer of Interactive Brokers. Influencer is not employed by, partnered with, or otherwise affiliated with Interactive Brokers in any additional fashion. This content represents the opinions of Influencer, which are not necessarily shared by Interactive Brokers. The experiences of the Influencer may not be representative of other customers, and nothing within this content is a guarantee of future performance or success.
None of the information contained herein constitutes a recommendation, promotion, offer, or solicitation of an offer by Interactive Brokers to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Investment involves risks. Investors should obtain their own independent financial advice and understand the risks associated with investment products and services before making investment decisions. Risk disclosure statements can be found on the Interactive Brokers website.
Interactive Brokers is a FINRA registered broker and SIPC member, as well as a National Futures Association registered Futures Commission Merchant. Interactive Brokers provides execution and clearing services to its customers. For more information regarding Interactive Brokers or any Interactive Brokers products or services referred to in this video, please visit www.interactivebrokers.com.
