Stock splits can influence market activity and investor sentiment, but they do not alter a company's fundamental value, making it crucial to focus on the company's performance.
When considering whether to buy a stock before or after a split, investors should weigh their goals and the company's fundamentals, not just the split itself.
Examples like NVIDIA, Broadcom, and Chipotle demonstrate that stock splits can garner investor attention and perceived value, yet often do not change the underlying investment potential.
A stock split increases the number of shares while reducing the price per share proportionally, maintaining the company's overall market capitalization.
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