Companies opt for a stock split for several reasons. For example, it can occur when the stock price reaches such a high level that smaller investors can't even dream about touching.
Also, a higher number of shares can improve the stock's liquidity and facilitate trading; therefore, companies choose to divide their stocks.
Lastly, stock splits can potentially rekindle investors' interest in specific companies, boosting their prices and media coverage.
Should you care about stock splits?
One can argue that we just handpicked the best possible examples. However, history has shown us* that the market stir surrounding stock splits can be a powerful price driver, with the likes of Microsoft and Netflix showing significant gains following stock splits. And that's something you might want to further look into, as long as you equip yourself with the right trading resources and possess the required market knowledge.
*Source: Motley Fool.
So, who could be this year’s candidates for a stock split?
Now since we got the “what” and “why” out of the way, time to get to the promised list of stock split candidates: