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Sony's Stock Split Comes With a Catch

TheMotleyFool

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Sony's Stock Split Comes With a Catch: https://g.foolcdn.com/editorial/images/789571/woman-and-man-with-horrified-faces-gettyimages-636372680-1200x800-9b9f185.png

Venerable electronics firm Sony (NYSE: SONY) has joined the cadre of companies choosing to split their stocks. Sony announced a 5-for-1 stock split to take effect Oct. 1.

Forward stock splits, like Sony's, lower the price of individual shares, making them accessible to a wider pool of investors. This provides an incentive to buy Sony stock. But before deciding to invest, you may want to be aware of one potential drawback.

If you buy and hold Sony shares, you'll eventually end up with stock in a business you may have no interest in owning. That business is Sony's financial services division.

Source Fool.com