FinCap Friday: Stock Split Summer

Which of the following is a good analogy for a stock split?

• Getting a pay bonus at your job

• Buying something on sale

• Paying a premium for something you want

• Exchanging large currency bills for smaller bills

True or False? A stock split changes the overall value of a company.

• TRUE

• FALSE

Which companies had a stock split in the summer of 2024?

• Tesla

• Chipotle

• Nike

• Nvidia

Which statement below is generally true about a company that announced a stock split:

• The company is doing very poorly

• The company only offers short term profits

• The company is in good health

• The company is not under good leadership

When it comes to stock splits, experts advise young investors to:

• stop paying too much money for stocks after they split

• ignore the stock split hype and focus on fundamentals

• beware of marketing scams around stock splits

• obsess over every piece of news about stock splits

Would you consider investing in a company that announced a stock split? Explain why.