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What Happens When Your ETF Splits?
March 26, 2014 at 07:00 AM EDT
Stock splits and reverse splits are a commonplace practice in the investing world and have been in place for quite some time. A company may choose to split their stock to make the price more affordable and attractive to potential investors or may reverse split to stay on a particular trading exchange (a number of firms were forced to reverse split at the bursting of the internet bubble to remain on popular exchanges). But what happens when an ETF splits and why? We explore this topic below to help investors gain a better understanding of the concept [for more ETF news and analysis subscribe to our free newsletter]. ETF Splits Explained Let’s start with why a fund may choose to split. The reasons are identical for that of a particular stock. Many choose to split when the issuer decides the price may be too high and would like to make [...] Click here to read the original article on ETFdb.com. Related Posts: No Related Posts
Stock splits and reverse splits are a commonplace practice in the investing world and have been in place for quite some time. A company may choose to split their stock to make the price more affordable and attractive to potential investors or may reverse split to stay on a particular trading exchange (a number of firms were forced to reverse split at the bursting of the internet bubble to remain on popular exchanges). But what happens when an ETF splits and why? We explore this topic below to help investors gain a better understanding of the concept [for more ETF news and analysis subscribe to our free newsletter]. ETF Splits Explained Let’s start with why a fund may choose to split. The reasons are identical for that of a particular stock. Many choose to split when the issuer decides the price may be too high and would like to make [...]
