17 days ago • Posted by Martin Boujol
Stock splits are back; but are they so useful?
2020-2021 has seen a comeback of stock splits compared to the last 5 years. Indeed, there have been 8 stock splits in the S&P 500 in the past 12 months, the most in 6 years. Splitting a stock has the merit to make it cheaper and thus, more accessible to a wider range of investors. While mathematically, it doesn't change much, a split usually attracts more inflows simply because of opening up the investment to more investors.
Source: Bloomberg, Yahoo Finance