A Highly Anticipated Stock Split Will Take Effect on Nov. 17. Here's What Investors Need to Know.

Some companies create so much value over the long term that their stock price surges into the hundreds, or even thousands, of dollars. This makes it hard for retail investors with small portfolios to buy one whole share, so if their broker doesn't offer fractional share trading, they could miss out on the opportunity entirely.A company can remedy this problem by executing a stock split, which increases the number of shares in circulation and proportionately decreases the price per share. For instance, a 10-for-1 stock split would increase the company's share count tenfold, while reducing the price of a single share by 90%. It doesn't change the value of the underlying company; it just enables investors to buy shares at a much lower price point.Netflix (NASDAQ: NFLX) stock has traded at over $1,000 for most of this year, so many investors have been eagerly awaiting a split. They are about to get their wish, because the company will execute a 10-for-1 split after the market closes this Friday, Nov. 14, and its stock will then commence trading on a split-adjusted basis on Monday, Nov. 17. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool