VF Stock Spliting

[street]

So I seen this on another site I visit (outdoor site) and this guy asked this question about that he has VF stock and the Company is splitting.

So can someone tell me what this means? There were some that said if you own 500 shares and if a 50/50 split you then would have 1000 shares but at half the price of when you owned them with 500 shares?

Why would a company do that?

 

[Bryan Barnfellow]

One reason companies do that is to reduce the apparent cost of shares on a per share basis. This is to keep them in the reasonable cost range, mainly for retail investors. Some would rather own 100 shares of a $25 stock than 1 share of a $2500 stock. As you have surmised it makes no difference in reality.

-BB

 

[REWahoo]

This isn't a stock split, VF is going to spin off their Wrangler and Lee brands into a separate company.

https://www.zacks.com/stock/news/317553/vf-corp-vfc-surges-on-potential-sale-of-denim-brands

 

[MRG]

Splits are done for a number of reasons. Cost basis is a great example. They really don't change anything othe or than the share count and price.