You Can't Control Stock Splits, But You Can Control What You Do About Them
Investors just love stock splits. While a company's market capitalization typically offers more important information than its stock price, a four-figure price tag on a single share can intimidate most investors. However, thanks to stock splits, a top stock like Amazon (NASDAQ: AMZN) looks a lot more attractive at $145 a share today.
Let's dig a little deeper and see whether or not stock splits actually make any difference to a stock, and what you should do about them.
Stock splits are corporate events through which a company increases the number of its outstanding shares by splitting its existing shares by a factor greater than one. In other words, the pie stays the same size, but now there're more pieces, with each piece being smaller than it was previously. While Stock splits often double the number of outstanding shares, they can be in any ratio.
Source Fool.com
