A Guide to Nasdaq Stock Splits

A stock split is a way for companies to make their shares more affordable for investors, and the Nasdaq stock exchange is where many of these splits happen. The exchange allows companies to split their shares up to four times per year.

Companies like Amazon and Google have split their shares multiple times to make them more attractive to investors. This can be a strategic move to boost investor confidence and increase trading volume.

A stock split doesn't change the company's value or its underlying business, it simply adjusts the price of the shares. For example, if a company splits its shares 2-for-1, the price per share will be halved, making it more accessible to a wider range of investors.

See what others are reading: 3m Company Stock Splits

A reverse stock split is a corporate action that can help a company avoid delisting from an exchange by increasing its share price. This is usually done when the share price falls too low.

Related reading: Nasdaq Google Class a vs Class B Stock

Having a higher share price can attract certain investors who wouldn't consider penny stocks for their portfolios. This is because some investors only invest in companies with higher share prices.

A share price that's too low can put a company at risk for delisting. This is why a reverse stock split can be a lifesaver for some companies.

In a reverse split, the number of shares shareholders own will be reduced and the price of each share will increase. For example, a 1:10 reverse stock split would mean you own fewer shares, but each share is worth more.

Your broker would handle the reverse split automatically, so there's nothing you need to do.

Take a look at this: Stock Reverse Splits

The Nasdaq Stock Split History is a fascinating topic. Nasdaq has a 23-year stock split history.

The company has a market capitalization of $45.977 billion and generates $7.400 billion in revenue.

Nasdaq is a leading provider of trading, clearing, marketplace technology, regulatory, securities listing, information and public and private company services.

A different take: Share Split History

The company operates in four business segments: Market Services, Corporate Services, Information Services, and Market Technology.

Here is a brief overview of Nasdaq's business segments:

Nasdaq's technology powers markets across the globe, supporting equity derivative trading, clearing and settlement, cash equity trading, fixed income trading, trading surveillance, and many other functions.

Check this out: Stocks Options Trading