A stock’s price is also affected by a stock split. After a split, the stock price will be reduced (since the number of shares outstanding has increased). Thus, although the number of outstanding shares increases and the price of each share changes, the company’s market capitalization remains unchanged.

Is stock split good or bad for investors?

Splits are often a bullish sign since valuations get so high that the stock may be out of reach for smaller investors trying to stay diversified. Investors who own a stock that splits may not make a lot of money immediately, but they shouldn’t sell the stock since the split is likely a positive sign.

Why are split share prices confusing for investors?

The confusion highlights the need for investors to read net asset value information carefully. Some split share companies break it out separately by class of share, while others provide only the total NAV figure. You’re correct that an investor could have made money by buying “at or near the low.”

What are capital shares of financial 15 split Corp II?

His comment focused on the capital shares of Financial 15 Split Corp. II , which invests in a portfolio of 15 Canadian and U.S. financial services companies. Here’s his e-mail, which I’ve edited and condensed for clarity, followed by my response.

What’s the net asset value of financial 15 split?

I encourage you to read the fund’s Feb. 28 update available at financial15.com. You’ll see that the net asset value (NAV) of Financial 15 Split Corp. II was $15.53 as of that date. However, contrary to what you say, this is not the net asset value of the capital shares. It is the net asset value of the whole corporation.

What did Jim from Victoria say about split capital shares?

Jim from Victoria complained that the article portrayed split capital shares in an unfairly negative light. His comment focused on the capital shares of Financial 15 Split Corp. II , which invests in a portfolio of 15 Canadian and U.S. financial services companies.