What is a stock split?: Yahoo Finance Explains

A stock split is when a company divides up each share of its stock into a set amount of shares. When a company does a stock split , it increases the amount of outstanding shares and therefore, increases the liquidity of a stock. It also helps lower the stock price , which makes it more accessible to investors.

And at the close of the trading day, all investors holding the stock will have their shares converted and then the stock starts trading again on this new split adjusted basis.Doing a stock split, increases the number of outstanding shares or shares owned and thus increases the liquidity of the stock making it easier for buyers and sellers to trade.

These two top Canadian stocks look undervalued right now but might not remain cheap for very long. The post 2 Top Bargain Stocks Ready for a Bull Run appeared first on The Motley Fool Canada.The company largely relies on brick-and-mortar stores and has been grappling with customers turning to e-commerce firms for buying video games and collectibles.

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