Up until recently, a single share of e-commerce giant Amazon (NASDAQ: AMZN) cost as much as $2,447, and investors needed to fork out about $2,235 to buy one share of Google parent company Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG). Those lofty prices were a barrier for smaller investors who wanted to own pieces of these iconic tech giants. 

But both companies chose to execute 20-for-1 stock splits a few months ago, which increased the number of their shares in circulation by 20 times and shrunk their stock prices in proportion. It hasn't changed the underlying value of either company, but now one full share of Amazon can be purchased for just $127, and a share of Alphabet for $107. 

It's a win for investors working with smaller amounts of money. Here's why dividing $2,000 between Amazon and Alphabet stock now could lead to long-term gains. 

Continue reading

Source Fool.com