Can somebody educate my the benefits of a stock split?
In case of Amazon, they don't seem to mind the high stock price. Also, many trading platforms nowadays allow fractional shares (though you don't get the same voting rights with fractional shares).
There is no such thing as fractional share as far as a company is concerned.
This is effectively an investment product no different from a fund: The trading platform/bank buys shares and you buy shares of the pot. You don't get the same voting rights because as far as the company is concerned you do not own any shares.
Stock splitting is to help liquidity by making shares more affordable, and it also as a side effect helps stock-based compensation (e.g. RSUs).
More people can afford lower priced shares as opposed to high priced shares. They can buy sooner and have less risk by buying more, smaller valued shares, more regularly, instead of buying less, bigger valued shares, less regularly.
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[ 22.0 ms ] story [ 421 ms ] threadIn case of Amazon, they don't seem to mind the high stock price. Also, many trading platforms nowadays allow fractional shares (though you don't get the same voting rights with fractional shares).
This is effectively an investment product no different from a fund: The trading platform/bank buys shares and you buy shares of the pot. You don't get the same voting rights because as far as the company is concerned you do not own any shares.
Stock splitting is to help liquidity by making shares more affordable, and it also as a side effect helps stock-based compensation (e.g. RSUs).