Stock Split Watch: Is Amazon Next?
A stock split is something of an enigma in the investing world. When shares split, it increases the number of shares on the market but decreases the price of the shares by the same ratio. As a result, nothing really changes regarding the company, and its market cap remains the same -- meaning the impact should be largely non-consequential.
Over the past several years, however, history has been turned on its head, with several high-profile stocks climbing significantly in the wake of their headline-grabbing splits. Some market watchers suggest that the "lower-priced" shares appeal to a greater cross section of the market, creating stronger demand for the stock.
With shares priced in excess of $3,300 per share, will Amazon (NASDAQ: AMZN) be next up to split its stock?
Source Fool.com
