Amazon's Stock Split: The Real Reason It Matters
In most cases, stock splits don't really matter. Whether you slice your company's ownership up in 10 million shares or 100 million shares, the total market value stays the same. Each slice is just 10 times larger in one serving model than the other.
So when I see one of my favorite companies announcing and executing a stock split, I tend to shrug and move on. I have podcasts to consume and a poor guitar to abuse, after all.
But there are times when a stock split makes me sit up and take notice. Amazon (NASDAQ: AMZN) sparked that response in March last year, when it scheduled a 20-for-1 stock split for early June. To me, this one was actually a big deal -- but perhaps not for the reasons Amazon's management intended.
Source Fool.com
