3 Stock Splits To Watch After Netflix
Zacks Investment Research | Jun 25, 2015 12:31AM ET
Original postOn Tuesday, video streaming giant Netflix (NASDAQ:NFLX) announced it would execute a 7:1 stock split. With share prices climbing towards $700, NFLX is one of the higher priced companies on the market, and the split will help increase the stock’s marketability and liquidity.
Indeed, this is the general purpose of any stock split. By splitting the stock, more shares are on the market at a lower cost per share. While this doesn’t actually change the value of the stock, it can help make shares more marketable to smaller investors. If smaller investors become more interested, demand goes up, which could hypothetically lead to an increase in share prices.
It is this potential growth that leads most companies to split their stocks. One only needs to look at Netflix’s prices since the announcement, detailed by Original post
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