Many people have difficulties in handling stock. However, Samsung Electronics tried a new project primarily, which can help people in dealing with stock. It is decided on a 50:1 stock split. The stock split is to divide the company's share into half or any portions they want to have. For example, if there is a share worth 5,000 won, it will be divided into fifty 100 won shares. This can help encourage a lot of people to buy shares.

▲ What is the Stock Split

Originally, the real cases that do the stock split are just three. When the stock trade volume and the stock price are low, and when the stock price per a week is high, people should try the stock split. Then, why does Samsung Electronics tried the stock split? It is because of two reasons. First, by increasing the stock trade volume, it can help prepare the company's investment funds. Also, it is so efficient in increasing the stock price.

How about the effects that affect the stock price? Can the stock price increase rise the stock trade volume when doing the stock split? In the short run, it is ineffective. On the other hand, in the long term, it is effective to have stock split. However, it is important to check the company's superiority and to make the constant good performance. If a company is insolvent enterprise and is in a big trouble like bankruptcy tries the stock split, it cannot affect the stock price.

▲ The Samsung Electronics

On March 23, there will be a regular shareholders' meeting about the stock split. Samsung Electronics announced that maybe about the middle of May, people can transact with split stock. It can help so many people by giving more opportunities to have the Samsung Company's stock. Also, Samsung Electronics said that there will be many benefits this year. Many people said that with investor's base expansion and liquidity increase effect, the stock split can contribute to stock trade vitalization and be of help to increase the enterprise's value in the long run.

Feb.18th, by Taehee Lim