Why Tesla's Stock Split Was a Dud Like Amazon's

A well-known company has a super-high-priced stock. The company announces a stock split to make its share price more appealing to small investors. Investors applaud the decision and eagerly await the date of the split. When the day finally comes, the stock jumps.

That's the expected script. In reality, it doesn't always happen that way. Just look at Amazon's (NASDAQ: AMZN) 20-for-1 stock split in June. The much-anticipated event resulted in Amazon's share price falling instead of rising.

But you don't have to go back that far. Tesla (NASDAQ: TSLA) conducted a 3-for-1 stock split last week. And the stock pretty much did nothing. Here's why Tesla's stock split was a dud like Amazon's.

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Source Fool.com