Question

If a company splits its stock,what is the expected effect on the stock’s share price?

Answer 1

$\huge\tt\pink{❂\:Hello\:Mate}$

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.♡~

Answer 2

An overvalued stock has a current price that is not justified by its earnings outlook, known as profit projections, or its price-earnings (P/E) ratio. Consequently, analysts and other economic experts expect the price to drop eventually.