What happens to my shares if a stock splits?
A stock split is similar to taking a $100 bill and splitting it into two $50 bills (or five $20 bills). The number of bills you hold increases, but the overall value of your money remains the same.
If a stock that you own splits, the number of shares of stock on the market (or market capitalization) for that company increases, but the total value of your shares remains the same.
For example, if a company you’re invested in issues a 2 for 1 split, you would receive one additional share for each share you currently own. Therefore, if you own one share of a company that is worth $100, after a split you would ultimately own two shares worth $50 each, and $100 in total.
Q. Will Stash tell me when to sell my stock shares?
You will be able to sell your shares of stock in the same way that you sell shares of an ETF today. For guidance on how to judge the performance of a company, we recommend that you consult all available resources on learn.stashinvest.com.
Q. Do I have voting rights?
Yes, you may have voting rights for some of the companies you invest in on Stash! You need to own at least one whole share of the stock though. Since we trade fractional shares for our customers, some of our users can hold less than one full share. As a shareholder, your voting power is…
Q. What happens to my shares if a company splits into two separate companies?
Stash treats company splits on a case-to-case basis. If a company you’re invested in should split, Stash will either deliver company payments for shares or offer the shares of the new companies. Should a company split into two, our investment committee would consider the economic reasons for the split and assess the suitability of offering…
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