Confusing Market Reaction to Stock Splits gettyIf you asked me that question two months ago, I would have laughed. Stock splits don’t change anything about a company. That benefit of a stock split is far less important now with the ability to trade a single stock or even fractional shares on many stock trading platforms (unlike the more traditional 100 lot order). In theory, stock splits shouldn’t do much, but there is some evidence that recent splits by Apple AAPL and Tesla TSLA have had a large impact on their valuation. Tesla could be included in the S&P 500 which would force extremely large buying interest from investors tracking the S&P 500.

Source: Forbes August 29, 2020 13:30 UTC