2 Stock-Split Stocks That Could Make You Rich by Retirement
Stock splits have taken over the market this year. Among the high-profile stocks that have split their shares in 2022 are Amazon, Alphabet, and Tesla, three of the most valuable companies in the world.
Stock splits don't change the fundamental value of a stock, but they get attention because they make individual shares of a stock cheaper, therefore making it more affordable to individual investors. They also act as milestones for a company's growth, as stock splits tend to come when a stock reaches a round number, like $1,000 a share.
Though stock splits don't change the underlying value of a stock, there is some evidence that they lead to better returns. A study from Bank of America showed that since 1980, stock-split stocks generated average returns of 25% after the split was announced, compared to just a 9% return for the S&P 500.
Source Fool.com
