Why do companies do small-ratio stock splits?


eg. SLG

The first split for SLG took place on January 21, 2021. This was a 971 for 1000 reverse split, meaning for each 1000 shares of SLG owned pre-split, the shareholder now owned 971 shares.

Are they trying to trick current investors who don't pay attention that the price of their share has increased/not fallen?

Jef seems to like to do it too: JEF's 6th split took place on January 17, 2023. This was a 1046 for 1000 split, meaning for each 1000 shares of JEF owned pre-split, the shareholder now owned 1046 shares. What's the purpose?


Comments

Leave a Reply

Your email address will not be published. Required fields are marked *