One reason companies
offer stock splits is to encourage buying. This works because
some investors will automatically purchase a stock set to
split, because they "perceive" the price will increase,
since the split price appears to be less to some investors,
even though the amount of stock you own after the split,
remains the same.
Another way stocks increase in value is when the profits of a company increases,
the price per share can also increase at some time in the future. When dividends
are paid the value of your stock will also increase (see our Quote/Chart
page).
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