Discover this podcast and so much more

Podcasts are free to enjoy without a subscription. We also offer ebooks, audiobooks, and so much more for just $11.99/month.

Ep 169: Stock Splits: Unpacking the Hype

Ep 169: Stock Splits: Unpacking the Hype

Fromrich & REGULAR with Kiersten and Julien Saunders


Ep 169: Stock Splits: Unpacking the Hype

Fromrich & REGULAR with Kiersten and Julien Saunders

ratings:
Length:
29 minutes
Released:
Jul 1, 2024
Format:
Podcast episode

Description

There's a lot of buzz around stock splits these days. Nvidia, Walmart, Chipotle - everyone's talking about it! But, as we explained on the podcast, this isn't the financial revolution you might think it is.A stock split is a simple concept: it's like taking a whole pie and cutting it into more slices. You don't end up with more pie; you just have more pieces. The same is true with a stock split. You don't actually increase the value of your investment; you simply have more shares, each with a lower price.So why do companies do this? Well, it's all about making their stock more accessible. When a company's stock price gets very high, it can be difficult for the average investor to buy in. A stock split makes those prices more palatable for folks with smaller portfolios. But let's be honest, it's also a bit of a marketing ploy. Tune into this week’s episode as we answer the question: what does it all mean for you? Key Takeaways: A stock split is like cutting a pie into more slices; it doesn't change the size of the pie, just how it's divided.Stock splits don't increase the value of your investment.Companies do stock splits to make their stock more accessible and increase trading volume.Stock splits don't guarantee future success.Focus on the fundamentals of a company, not just the hype around a split.Stock splits can offer an opportunity to buy into a good company at a more affordable price, but they’re just a piece of the puzzle.Consider your investment goals and risk tolerance when evaluating a stock split. Connect with Julien and Kiersten on our website, Instagram, Twitter, and YouTube.Join our email list to get updates from us, opportunities for discounts, freebies and a quick rundown on the relevant financial and career news impacting your life. Get our book Cashing Out: Win the Wealth Game by Walking Away, named 2023 best overall book about investing by Business Insider and one of the best personal finance books by ForbesIf you would like to learn more about investing, check out our newest class, Making Money Grow
Released:
Jul 1, 2024
Format:
Podcast episode

Titles in the series (100)

Not rich and famous. Rich & REGULAR. Sure, it would be great to be famous. But there’s a lot you can do on your income if you’re smart about it. Kiersten and Julien Saunders give out the tips and tricks but also dive deeper into the concepts behind wise money management.