Attractiveness of Stock Splits for Executives

12manage is looking for students / contributors...

Employee Stock Options > Forum Log in

Attractiveness of Stock Splits for Executives
Vakhtang Kelbakiani, Member
I have heard that company executives are excited every time their stock splits (say, three for one)...
What is so good about this event, except the increase in stock flexibility?

Why a Stock Split is Attractive for Executives
Jaap de Jonge, Editor
One reason is that many executives personally own stock in their own firm. That could be part of an employee stock option plan or simply because they believe in their own company and improvement efforts.
Suppose one exective currently holds 1000 stocks.
If the stock price increases by $0.10 then the value of his shares increases by 1000 x $0.10 = $100.
After there has been a stock split as you say 3 for 1, then after the split the executive holds 3000 shares.
Suppose now the price of the stock goes up by $0.10, then the value of his shares goes up by 3000 x $0.10 = $300.



  Do you wish to study further? You can learn more from the summary, forum, discussions, lessons, courses, training, instructions, expert tips, best practices and education sources. Register.  

Special Interest Group Leader

You here

More on Employee Stock Options
  • Attractiveness of Stock Splits for Executives

Best Practices

Expert Tips


About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2018 12manage - The Executive Fast Track. V14.1 - Last updated: 21-8-2018. All names of their owners.