Alphabet Stock Split: The Real Reasons It Matters

Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), the parent company of Google, executed its 20-for-1 stock split on July 15. That represented the tech giant's second stock split after its 2-for-1 split in 2014, and reduced its trading price from about $2,200 to approximately $110 per share.

Many investors dismiss stock splits as meaningless, since they merely break single shares into smaller pieces. The company's market cap and valuations will remain unchanged, so it's not actually "cheaper" just because its shares are now trading at a lower price. If you pay a dollar for a single slice of a 20-slice pizza that originally cost $20, you're not getting a bargain. Fractional share purchases, which are now offered at most brokerages, make stock splits even less meaningful for most retail investors.

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Source Fool.com