what happens when share prices keep going up?
what happens if a company’s stock prices keep going up? i heard that if a company’s stock price is really high, lets say 500 and nobody is buying, then the company will divide each of its share by 5 and the price by 5 as well. so if a person had 100 shares before, they will have 500 but each worth 100 each. is this true?
Yes, it’s called a stock split. The investors end up with the same ownership value just a different price per share. Number of shares increases by the split ratio.