Is it good to purchase social before the stock split?

It is not advisable to purchase stock based solely on the expectation of a stock split. Here are the reasons why:

1. Fundamental Value: Stock splits do not change the fundamental value of a company. The market value of the company and the value of each shareholder's investment remain the same after a stock split.
2. Psychological Impact: Stock splits can create a psychological perception of lower prices, which may attract new investors. However, this does not necessarily reflect a change in the company's value.
3. Market Reaction: While some stocks may experience a short-term bump after a stock split, this is not a guarantee. Historical data shows that some stock split stocks may underperform in the long term.
4. Dividend Adjustments: The cost basis of each share should be adjusted to reflect a stock split, which may result in a lower effective price per share. This adjustment is a tax event for shareholders.
5. Complexity: Stock splits can result in complex order adjustments for short-sellers and options holders, which may not be immediately beneficial.

In conclusion, while a stock split may create a temporary excitement or affordability perception, it should not be the sole reason for purchasing stock. Investors should consider the company's fundamentals, long-term growth prospects, and the current market conditions before making investment decisions.