Could This 1 Thing Hurt Amazon's Post-Stock Split Performance?
Amazon's (NASDAQ: AMZN) shares are set to open on Monday for a much lower price than we're used to seeing. That's because the retail giant is completing a 20-for-1 stock split. The move doesn't change the market value of the company -- or the value of your investment in Amazon. But, in offering current investors more shares, Amazon is bringing down the value of each individual share.
Splits make it easier for a broader range of investors to invest in stocks that have climbed to high levels, often into the thousands of dollars. For example, Amazon shares have been trading at around $2,400. As of Monday, they'll trade at the split-adjusted price of about $120. The stock could get a lift as new investors flock to it. Or will one particular thing hurt Amazon's post-split performance?
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Source Fool.com
