Many companies have undergone stock splits this year. Stock splits are usually undertaken when the share price has reached very high levels. The bull run last year led to a massive spike in the stock prices of many companies.
Stock splits occur when a company decides to increase the number of its shares to boost the stock’s liquidity and make it affordable for investors. A stock split does not change the company’s market value. However, post a stock split, the price often rises as many investors consider this action as conveying the company’s unrealized value and growth prospects.
