A stock split’s main purpose is to make a company’s shares more appealing to potential investors. By raising the number of outstanding shares, it improves a company’s liquidity. Stock splits do not change the market value of a corporation; rather, they are a reassignment of share value by increasing the number of shares.
For example, on Monday, the much-anticipated Amazon.com, Inc. stock split was completed; shares went from $2,447 on Friday’s close to $122 on Monday’s open.
