This Stock-Split Stock Is Rising. Time to Buy?
This has been a year of star-studded stock splits. All eyes have been on the companies that have launched them -- and on their pre- and post-split performance. Stock splits on their own aren't a solid reason to buy a stock. That's because they don't change anything fundamental about a company.
But they do result in one very big positive: Splits make it easier for a broader range of investors to buy a particular stock. By issuing more shares to current holders, the price of each individual share goes down. If more and more investors jump on board and like what they see, lasting gains could follow. One of this year's biggest stock-split stars has been on the rise lately. Is it time to buy? Let's find out.
E-commerce giant Amazon (NASDAQ: AMZN) has climbed more than 20% since its June low. This low came about two weeks after its 20-for-1 stock split. Did the split cause the stock to drop? Probably not. As mentioned above, splits aren't a reason to buy a stock -- and they aren't a reason to sell a stock, either.
Source Fool.com
