The stock market has started to recover from the doldrums of 2022. The S 50 index is up 14% year to date, and the tech-heavy Nasdaq Composite index has gained 30% over the same period.

This return to rising stock prices is likely to inspire another round of stock splits, following the high-profile splits of Amazon, Tesla, , Nvidia, and Shopify in recent years. It's true that most of those fell during the inflation crisis, but they all followed long winning streaks for their stock prices.

Stock splits are not business moves of earth-shaking significance. They don't create new revenue streams, widen a company's profit margins, or materially change its market capitalization. They just cut the same pie into a larger number of slices -- the total value of the shares you hold the day before a split will be about the same as the value of the larger number of Stock stubs you'll own afterward.

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Source Fool.com