Why companies announce Stock Split? Is there any advantage to that?
It has! Have you ever thought of buying stocks for Eicher Motors or Page India? They are fundamentally super strong company.
Who don’t?
But 26,250 will shy most of the retail investors off! You can get a tiny diversified stock portfolio using that amount. But what if the stock price is 262.50. Will you buy it?
I guess it is a yes now. You will not bother to get 10–20 shares if you have a portfolio of 30k. Yes, volatility will increase and stock price will rise more!
Stock split helps in long-term! At least 90% of the cases.
