Stock splits, although less common nowadays, can enhance a company's market perception, attract a broader range of investors, and improve liquidity, especially after periods of strong performance.
The Nvidia 10-for-1 split garnered attention not just for its potential to boost share accessibility, but also in light of investor reactions to supply chain concerns impacting future earnings.
Understanding stock splits is crucial as they do not impact a company's market capitalization; rather, they alter share prices and can signal corporate strategies to investors.
Despite a decrease in stock splits over the years, they still play a significant role in financial markets, offering companies means to refresh investor interest and adjust share pricing.
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