Why Are All These Top Stocks Splitting Their Stocks?
Suddenly, stock splits are fashionable. Amazon (NASDAQ: AMZN) split its stock in early June, and four more high-profile stocks have splits in the works. After a quiet decade for stock splits between 2010 and 2020, why are these top stocks splitting now?
The short answer is that times have changed. Simply put, the benefits of stock splits are more relevant today than they've been over the past 10 to 12 years.
When a company splits its stock, it generates buzz and lowers the share price. Both outcomes can increase demand for the stock. Financial headlines draw attention, and a lower share price appeals to a wider audience of investors.
Source Fool.com
