On the back of a strong surge in its share price, buoyed by its newdrugs, the US pharmaceutical giant Merck & Co says it is splitting its stock 2-for-1 for shares held as of January 25. Merck's last split, which was 3-for-1, was in 1992.

Is Merck splitting its stock?

MERCK PLANNING A 3‐1 STOCK SPLIT; Maker of Pharmaceuticals Sets Quarterly Dividend at 50 Cents a Share. A three‐for‐one split of the common stock of Merck & Co. was recommended yesterday by the company's directors. The proposed split is subject to approval by stockholders at the company's annual meeting on April 28.

Are stock splits good or bad for shareholders?

A stock split doesn't add any value to a stock. Instead, it takes one share of a stock and splits it into two shares, reducing its value by half. ... Investors who own a stock that splits may not make a lot of money immediately, but they shouldn't sell the stock since the split is likely a positive sign.