The announcement of a stock split tends to decrease the value of a security issuer's securities, at least temporarily.

Question

Quizplus · Accepted Answer

A stock split itself does not inherently decrease the value of a security issuer's securities; it increases the number of shares outstanding while proportionally reducing the price per share, leaving the total market value unchanged initially. It can even be perceived positively as a sign of a company's growth prospects, potentially leading to an increase in stock value due to heightened investor interest.

The Announcement of a Stock Split Tends to Decrease the Value