![]() ![]() Apple announced a 4-for-1 split that July and Tesla followed suit with a 5-for-1 split the following month. The trend change came after Apple (AAPL) and Tesla (TSLA) got the party going in the summer of 2020. Last year was the first to feature a mini-boom in splits. Technology-Related Stocks Warm the Stock Split Waters Source: Wall Street Horizon data, 2016-2022 Across our coverage universe, which now spans more than 9,500 companies worldwide, reverse splits were more popular each quarter from 2016 through 2020.Ĭhart 1: Traditional Splits Surged Compared to Reverse Splits in 2021 A stock price too low might be a sign of a low-quality, high-risk stock and it could also lead to de-listing from an exchange. A reverse split happens when a company seeks to increase its share price to a more attractive range. In recent years, reverse splits outnumbered those of the traditional variety. Wall Street Horizon data shows that traditional stock splits have overtaken reverse stock splits in popularity. Splits can also improve liquidity by allowing smaller traders access to buy and sell, although the rise of fractional-share trading has likely reduced that impact. It’s thought that by splitting shares-whereby the stock price drops and the share count rises-a company tells the investing public that they believe their stock will soon rise back to the pre-split price. Stock splits are often used as a signaling mechanism by a firm’s management team. GME plans to increase its share count from 300 million to 1 billion. Not to be outdone, GameStop (GME) tossed its hat into the ring via a stock split announcement of the dividend variety. On March 28, Tesla ( TSLA), too, indicated it might split its shares again. High-profile companies like Amazon ( AMZN ) and Alphabet (GOOGL) recently announced 20-for-1 stock splits. We spotted more hopeful news: Stock splits are on the rise. There appears to be some optimism on the geopolitical front and inflationary fears might be in the process of peaking.Īmazon, Alphabet, Tesla & GameStop. A risk-on appetite during the back half of March helped cushion the blow to investors, though. The global aggregate bond market suffered one of its worst quarterly losses ever as interest rates vaulted and credit spreads widened. The S&P 500 notched a lone all-time high on the first trading day of the year, then pulled back significantly-easily into “correction” territory. Ahead of Q1 earnings season, traders might consider eyeing new stock split candidates.Firms from other sectors and geographies have engaged in splits, a sign of optimism.Stock splits are back by popular demand with many major tech-related companies taking the corporate action.iShares funds are powered by the expert portfolio and risk management of BlackRock, trusted to manage more money than any other investment firm. With more than twenty years of experience, a global line-up of 900+ exchange traded funds (ETFs) and $2.67 trillion in assets under management as of December 31, 2020, iShares continues to drive progress for the financial industry. IShares unlocks opportunity across markets to meet the evolving needs of investors. For additional information on BlackRock, please visit Twitter: LinkedIn: About iShares As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. NYSE Arca Ticker IAU – Current CUSIP: 464285105 New CUSIP: 464285204īlackRock’s purpose is to help more and more people experience financial well-being. On May 24, 2021, the iShares Gold Trust will have a new CUSIP: Such redemption may have tax implications for those shareholders, and a shareholder could recognize a gain or loss in connection with the redemption of the shareholder’s fractional shares.Īs of February 26, 2021, IAU has $29.1bn in AUM. A shareholder’s proportional fractional shares will be redeemed for cash and paid to the shareholder’s brokerage account of record. As a result of the reverse split, a shareholder potentially could hold a fractional share, which cannot trade on the Exchange. The total value of shares outstanding and the total value of a shareholder’s investment in the fund will not be affected by the reverse split. ![]() Once implemented, the reverse stock split will raise the share price of IAU and decrease the number of outstanding shares. ![]()
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