3D printing giant 3D Systems announced plans to split their stock. In the scenario described, owners of 3D Systems stock will receive additional shares. For every two shares owned on February 15th, share owners will receive an additional share. It’s a three-for-two split.
Companies typically split their stock when the value grows significantly. The theory is that the stock is easier to sell when the price is lower. If the price gets too high, then split. That’s what seems to be the case here.
Regardless of the reason, it’s good news for 3D printing and 3D Systems.
Via 3D Systems
Actually, the value does not increase significantly, It does not increase at all. The value (market capitalization) of the company is exactly the same, as you calculate it by multiplying price times number of shares.
Now, stocks often receive a short-term bump from retail buyers that believe it increase value, but that's all.
As for it being more affordable, that's not really a factor in this case as the share price of DDD was low enough anyway so that any one could purchase shares. It's not like the price of Google or Apple. And, buyers with only enough funds to purchase a few shares do not move the stock price anyway, it moves from bigger investors and institutional buyers.
Take care. Nice blog.
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