Quote:
Originally Posted by lewdog
That's the only benefit.
Doesn't mean it makes the stock more valuable like so many seem to think. He's saying he'd be all over an Amazon stock split, and if that's true, just buy shares now. 1 at the current price vs 2 at a split is the same value if you're limited on funds.
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There's bound to be free advertising during the split which leads to the impulse buys that generally follow the news cycle. The lack of "sticker shock" can increase sales in people who had been on the fence as well. Ya, it really doesn't make sense, but sticker shock is a mental barrier of entry for many.
Even if these affects wear off over time, it can definitely increase the value on short term trades. No split, no hype bounce. The assumed bounce my be what moves it from "Meh" to "Lets give it a shot" for people who try to play the rest of the field's emotional responses.