How to Benefit from a Stock Split:

The term stock split may sound like trouble, but in reality, it's a common event that shouldn't intimidate savvy investors. In fact, being part of a stock split can have some advantages.

A stock split is a procedure that increases or decreases a corporation's total number of shares outstanding without altering the firm's market value or the proportionate ownership interest of existing shareholders. This action, which requires advance approval from the company's board of directors, usually involves the issuance of additional shares to existing stockholders.

The common adage for stocks is to buy low and sell high, stocks let you buy low, accumulate more shares and eventually sell high. You heard the phrase, let your money work for you. Investing in companies that offer stock splits, your money is working for you.

I love stock splits and when I first started investing in the market, I started with a REIT that split every year for 2-1, after several years of that initial $100 investment, I made a 2000% gain. When IBM was selling over $100 in the 90's and they offered their first split, dropped the price to $50, I bought and the price rose back up to over $100 per share. Don't let others discourage you from stock splits.

This app helps you identify when the pending splits will occur. Also has a historical feature where you look at previous years splits.