1 Reason to Get Excited About Stock Splits and 1 Reason to Be Cautious

Stock splits have been making a lot of headlines in the investing world recently. Amazon (NASDAQ: AMZN), Google (NASDAQ: GOOG), Tesla, (NASDAQ: TSLA), and Shopify (NYSE: SHOP) are just a few of the major names that have announced them in 2022.

Research from the Journal of Banking and Finance shows that stock splits historically have had a positive impact on short-term returns. So should you get excited about companies that are splitting their stock? I believe there's one reason to be optimistic about these events, but another serious reason to approach them with caution.

Image source: Getty Images.

Continue reading

Source Fool.com