The neatest little guide to stock market investing

A split (literally division) is an event that occurs when a company listed on NASDAQ (for example) changes the number of shares forming its capital.
For example, in a split 2-for-1 (denoted 2:1), the final 2′actionnaire possess in shares instead of one.
If the share price before the split was $ 50, it passes theoretically after the split to $ 25 for the valuation of the company was not affected by this operation. It is indeed a game of records or only changes the number of shares in the portfolio but not the value of the portfolio. It’s like when you exchange a ticket of 20 euros from 10 € 2 cons. You have 2 times more tickets, but the amount remains the same.
Sometimes a split is noted classical ‘percent’. Thus a 2:1 split corresponds to a split of 100% of the title. A split of 50% corresponds to a split 3:2, ie for two shares owned, it gives you an extra 50% or more.
In theory, a split is a non-event. The portion of firm represented each share is reduced (or increased if it is a reverse split), but the carriers have a number of shares sufficient so that the value of their portfolio remains unchanged . The day of the split, the share value is adjusted so that the total capitalization of the company remains the same.
There are four important dates to watch in a split:
The date on which the Board proposes the splitThe date on which shareholders (General Assembly) approved the splitThe record date is the date on which we adopt the accounts and where it refers to persons affected by the split.The date of payment or applicationA split is not valid until it has been endorsed by a vote of shareholders. The board in turn emits a recommendation.