Should You Buy Netflix Before Its Nov. 17 Stock Split?

High-growth companies often create so much value over the long term that their stock price soars into the hundreds or even thousands of dollars. It then becomes more difficult for investors with small portfolios to buy one whole share, so unless their broker offers fractional shares, they could be forced to sit on the sidelines.A company can alleviate that problem by executing a stock split, which increases the number of shares in circulation and proportionately decreases the price per share. For example, a 10-for-1 stock split would increase the company's share count tenfold and reduce the price per share by 90%. It doesn't change the value of the underlying company, but it allows investors to buy shares at a much lower price point.Netflix (NASDAQ: NFLX) stock is trading at over $1,100 (as of Nov. 6), but the company announced a 10-for-1 split last month, which will take effect on Nov. 17. It will be the company's third stock split since going public in 2002, which isn't surprising considering its return of 102,570% since then. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool