Steve asked 2 years ago
How to approach investment that announces stock split and stock consolidation that company announces? This will impact a few levers used to value the company?
How to evaluate to determine whether to sell or buy before the corporate event?
1 Answers
Victor Chng Staff answered 2 years ago
Hi Steve,
Stock splits or consolidations do not affect a company's overall value. The market capitalisation remains the same; only the share price changes. It should not be used to decide whether to buy or sell.
Stock splits or consolidations do not affect a company's overall value. The market capitalisation remains the same; only the share price changes. It should not be used to decide whether to buy or sell.
Please login or Register to submit your answer