Is it better to hold the stock before the split or is buying after the split still advantageous

Whether it is better to hold the stock before a split or buy after the split depends on the investor's strategy and the context of the stock split.

1. Affordability and Liquidity: Investors who prioritize affordability and liquidity may find buying after the split advantageous. A stock split can make the stock more affordable, and the lower price may attract more buyers, potentially increasing liquidity.
2. Company's Growth Prospects: Investors who focus on the company's growth prospects may prefer to hold before the split. A stock split does not change the company's fundamental value, but it may be seen as a positive sign of strong management and growth potential.
3. Tax Considerations: From a tax perspective, there is no taxable event when a stock split occurs. However, the cost basis per share is adjusted to reflect the new stock structure and price, which can affect capital gains taxes when the shares are sold.
4. Investment Timing: If an investor believes the stock will increase in value after the split, buying after the split could be advantageous. Conversely, if the investor thinks the stock will perform better before the split, holding before the split may be better.
5. Diversification: Investors who are concerned with diversifying their portfolios may find buying after the split beneficial, as the additional shares can help spread the investment across more companies.

In conclusion, there is no one-size-fits-all answer to whether it is better to hold before or buy after a stock split. It depends on the investor's individual circumstances and investment goals. Some investors may find value in buying after a split for affordability and liquidity, while others may prefer to hold before for growth prospects or diversification. Tax considerations and the timing of the split should also be taken into account.