Why would a company split stock options pre-IPO?
Valencia asks:
I have been given stock options in my company which is currently private. Recently they performed a two for one split. As there is a lot of speculation regarding when the company will go public I was wondering if a company splitting their “stock” pre-IPO is any kind of indicator.
I have been given stock options in my company which is currently private. Recently they performed a two for one split. As there is a lot of speculation regarding when the company will go public I was wondering if a company splitting their “stock” pre-IPO is any kind of indicator.
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They want more of a float before the IPO, greater liquidity. Possible indicator or possibly diluting the shares.