Amazon’s 20-for-1 Stock Split: $AMZN is re-valued to $120 per share, from a staggering $2000 per share before the split.
$GOOGL & Nintendo have also announced stock splits which will take effect in July & October respectively.
$GOOGL & Nintendo have also announced stock splits which will take effect in July & October respectively.
A day after the stock split announcement on 10th March 2022, shares rocketed to a 6% increase.
Naturally, investors were happy with the news since stock splits are generally a sign that the company is doing well.
But is there more to it?
Naturally, investors were happy with the news since stock splits are generally a sign that the company is doing well.
But is there more to it?
Now you may wonder: Why does a stock split occur? 🤔
Companies choose to split their stock to lower their trading price to a more comfortable range for investors & to increase the liquidity of trading in their shares.
Companies choose to split their stock to lower their trading price to a more comfortable range for investors & to increase the liquidity of trading in their shares.
For example, investors might be more comfortable purchasing say, 100 shares of a $10 stock as opposed to 1 share of a $1,000 stock.
But do stocks that undergo a split beat the market in the long run?
But do stocks that undergo a split beat the market in the long run?
TLDR: Yes.
I analyzed 2000+ stock splits over the last 3 decades to find an edge.
Check out the results here:
marketsentiment.substack.com
I analyzed 2000+ stock splits over the last 3 decades to find an edge.
Check out the results here:
marketsentiment.substack.com
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