Tina Jessick's Blog

A stock splits is considered when stock prices are too high or low.

Forward stock splits are usually when stock price is too expensive for a average investor. A forward split increases the number of shares you own, while the price per share decreases proportionately. The total value of your position stays the same

Reverse stock are the opposite of a forward split. Instead of waiting for market demand to push the price up, a reverse stock split increases the price per share immediately.

Stock dividends are another way to receive additional shares – contributing to a reshuffling of numbers that influences the stock price.

Note that:

• Stock splits require shareholder approval.
• Stock dividends do not.