Savvy investors understand the value of a stock split is exactly zero, as it doesn't inherently change the fundamentals of the business.
Companies typically split their stock to make shares more affordable, increase liquidity, and signal management's bullish outlook, but these reasons don't affect fundamentals.
Despite the market's attraction to stock splits and short-term price boosts post-announcement, investors must conduct thorough research before purchasing a stock.
There's a tendency for stocks to rise following a split announcement, yet selecting a stock solely for its split can lead to poor investment decisions.
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