Companies usually issue stocks with a lot of fanfare. Most IPOs are well received and companies manage to raise a lot of money by issuing stocks. However, a lot of companies tend to buy their stock back from stockholders. We find out what this buyback means and how it helps a company.
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Why do companies split stock
Stock splits are essential to the growth of a company. Even though it sounds like a big deal, it is basically like getting four quarter coins for a dollar bill. What split stocks essentially mean is that a single stock is split into many. This divides the prices of one single stock into many. Here are a few key reasons behind the practice of splitting stocks.