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1 Beaten-Down Stock-Split Company to Avoid in 2025 and Beyond
Some investors associate stock splits with a company performing well, and there's a reason for that. Companies often split their stock after their share prices have become expensive due to market-beating performances. However, companies significantly lagging behind the market can be forced to conduct stock splits. Tilray Brands (NASDAQ: TLRY), a cannabis company, is a good example.When companies issue multiple new shares for each share that an investor owns, it's called a forward stock split. That's the kind that often attracts positive attention from investors and analysts. It can be a sign that management expects the business to perform well for a while. It can also make the shares less expensive, making them more affordable for average investors. There is another kind that's called a reverse stock split. That's when a company reduces the number of shares and increases its stock price proportionately. There is (at least) one good reason to perform a reverse stock split.Companies listed on major stock exchanges like the Nasdaq must maintain a share price above $1. If they fall below that and stay there long enough, they will be delisted, which can lead to various issues. Major stock exchanges have significant advantages that smaller ones don't.Continue reading
Some investors associate stock splits with a company performing well, and there's a reason for that. Companies often split their stock after their share prices have become expensive due to market-beating performances. However, companies significantly lagging behind the market can be forced to conduct stock splits. Tilray Brands (NASDAQ: TLRY), a cannabis company, is a good example.
When companies issue multiple new shares for each share that an investor owns, it's called a forward stock split. That's the kind that often attracts positive attention from investors and analysts. It can be a sign that management expects the business to perform well for a while. It can also make the shares less expensive, making them more affordable for average investors. There is another kind that's called a reverse stock split. That's when a company reduces the number of shares and increases its stock price proportionately. There is (at least) one good reason to perform a reverse stock split.
Companies listed on major stock exchanges like the Nasdaq must maintain a share price above $1. If they fall below that and stay there long enough, they will be delisted, which can lead to various issues. Major stock exchanges have significant advantages that smaller ones don't.
