August 19, 2022

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Business & Finance Blog

Stock Splits Flood Market, and Investors Hope for Gains

Stock splits are all the rage this year.

First, Alphabet  (GOOGL) – Get Alphabet Inc. Class A Report announced a 20-for-1 split in February. Then Amazon  (AMZN) – Get Amazon.com, Inc. Report announced a 20-for-one split in March. Tesla  (TSLA) – Get Tesla Inc Report also revealed plans in March to split its stock for the second time in two years. And finally GameStop  (GME) – Get GameStop Corp. Class A Report said it has plans for a 3 1/3 to one split.

Companies split their shares when the price gets so high as to make it difficult for non-wealthy investors to buy them. It also becomes difficult for employees to manage their holdings of the company’s stock when the price gets too high.