Although stock splits do not change the fundamentals of companies in any way, they often lead to sharp spikes in stock prices. That is exactly what happened with Check Point Software (Nasdaq: CHKP), an Israel-based Internet security company, on Friday. Shares of Check Point, which is among the minority of Internet companies that is profitable, surged more than 19 percent, gaining 38-1/8 to 236 after the company announced a two-for-one stock split.
Check Point stock has been a top performer in the past year. The stock is now trading at more than 10 times its 52-week low of 23, and it has been on a pretty steady climb since the middle of last year.