Stock-Split Follow-up: How Nvidia, Alphabet, Amazon, Netflix, and Tesla Have Performed Since Their Historic Splits

Which is worth more: a $100 bill or 400 quarters? Well, from a purely monetary perspective, there is none -- they have the same intrinsic value. Yet, their practical values are not equal. After all, paying a sizable bill with small change is hardly the way to win friends at the local pub. Similarly, a $100 bill won't do you much good at a vending machine that only accepts $1, $5, or $10 bills. In other words, having the right denomination matters -- and the same is true with stocks. When a company splits its stock, the company's overall value doesn't change -- it's just divided differently. Even though stock splits don't change a company's underlying fundamentals, they can shift retail investors' perceptions of a stock, often making it more appealing.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool