Why the Big Players Care About Splits and Rights ?
The Myth of the "Retail-Only" Corporate Action: Why the Big Players Care About Splits and Rights It is a common misconception that corporate actions like stock splits and rights issues are just "housekeeping" for retail investors. In reality, high-net-worth (HNW) and institutional investors are often the most active participants , as these moves directly impact their large-scale strategies and bottom lines. While a retail investor might see a stock split as a chance to finally afford one share of a "expensive" tech giant, an institutional fund sees it as a critical boost to liquidity , allowing them to move millions of dollars without swinging the price wildly. In the world of investing, it’s easy to assume that certain moves are designed solely to make stocks "look cheaper" for the everyday investor. But if you look under the hood of Stock Splits and Rights Issues , you’ll find that the "smart money"—the institutions and h...
