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Sagot :
The issuance of a 2-for-1 stock split on shares issued and the retained earnings, the share price will be halved.
Thus, a stock split always increases the number of outstanding shares and proportionately it lowers the price of the shares , In this issuance the market capitalization of the company remains unchanged.
A stock split is a good decision taken by a company's board of directors to increase the number of shares outstanding by issuing more shares to current shareholders.
Stock splits can improve the trading liquidity and the stocks are seemed to be more affordable.
The most common split ratios are 2-for-1 and 3-for-1, it means that a stockholder will have two or three shares, respectively, for each share held before the split of stocks.
To know more about stock split here:
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