Stock Splits

Ever bought a stock and suddenly noticed you have more shares than you originally bought? 🤔

This happens to many investors over time 🕰️

That's because the company you invested in just did a stock split! 💸

But what is a stock split and why do companies do it? 🤷‍♂️

A stock split is when a company increases the total amount of stock by issuing more shares to investors like YOU 📈

So, if a company does a 2-for-1 stock split, it means that you will receive 2 shares for every 1 you owned 🧮

The price splits evenly as well 🤯

If the stock was worth $100 before and then does a 2-for-1 split, each share will now be worth $50 but you will own twice as many shares 💸

So your investment value remains the same 🧠

Stock splits make stock more affordable to individual investors 💸

On Bloom, you can do fractional investing (buy less than a full stock!) so this doesn’t fully affect you 🤔

But, when a stock becomes cheaper, more people can afford the stock and potentially increase the demand 📈

In summary, stock splits are a way for companies to make their stocks more affordable and potentially increase demand for them 📈