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Should I buy a stock before or after a stock split?

The article from 247wallst.com discusses the implications of buying a stock before or after a stock split. It explains that a stock split does not inherently change the value of an investor's holdings; it merely increases the number of shares while reducing the price per share proportionally. However, stock splits often signal that a company's stock price has risen significantly, which might suggest strong company performance or growth prospects. This can lead to increased investor interest and potentially drive the stock price up due to heightened demand. The article advises that while buying before a split might seem advantageous due to the potential for a price increase, the timing isn't as critical as understanding the company's fundamentals. It suggests that investors should focus on the company's long-term value, earnings, and growth potential rather than the timing of the split itself. Additionally, it notes that post-split, stocks might experience a short-term boost, but long-term investment decisions should be based on comprehensive analysis beyond just the event of a stock split.

Read the Full 24/7 Wall St Article at:
[ https://247wallst.com/investing/2024/12/06/should-i-buy-a-stock-before-or-after-a-stock-split/ ]