Stock splits are becoming rarer but saw renewed interest in 2023, notably with Nvidia's 10-for-1 split. While the split itself doesn't change a company's overall value, it can influence investor sentiment and trading behavior. For example, Nvidia's stock was impacted more by shipment delays than by its split. Understanding splits is essential as they can boost accessibility for smaller investors, even though research indicates their effect on performance is mixed.
Stock splits, while not altering company value, signal investor sentiment, potentially impacting share trading behavior as seen with Nvidia’s recent 10-for-1 split.
Despite their prevalence declining, stock splits have regained attention, with notable ones happening in 2023 from companies like Nvidia, Broadcom, and Walmart.
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