Understanding Stock Splits: Their Mechanics and the risks to Financial Stability and the Economy
Stock splits are a common corporate action wherein a company increases the number of its shares while proportionally reducing the stock price. The company’s market capitalization remains unchanged, but shareholders end up with more shares. For example, in a 2-for-1 stock split, every existing share is divided into two, and shareholders receive an additional share for each one they hold, while the price per share is halved.
Unveiling the Complex Tapestry of Stock Market Crashes: A Comprehensive Exploration
The history of financial markets is punctuated by episodes of euphoria and despair, with stock market crashes serving as ominous reminders of the inherent volatility and unpredictability of the global financial system. A stock market crash is a sudden, severe…