If i have the money now, do i buy amzn before the split or wait until after?

do you buy a $5 cookie or the same cookie split in half for $2.50 each and take both halves

take ur pick

lmao, now i feel stupid.

ok but usually after a split, do prices of the stock go up or down

This post was edited by BOOTYS on Mar 23 2022 10:14pm

Usually up because some people think 1 share of a $1000 stock is too expensive but somehow 100 shares of $10 stock is cheaper

Some weird psychological effect

Buy it pre split

More small investors will buy in after lower stock price

Nah, not psychological at all. Lower price lets people who want to wheel it get in with a lower capital requirement which raises demand.

This post was edited by NetflixAdaptationWidow on Mar 27 2022 12:42am

Actually what I have heard is that people tend to take the fact of a stock split to be a sign that the company is doing well, and this encourages more people to buy its stock shares, which drives up the stock price.

Things rarely have single causes.

you say that and then u say it's rarely a single cause - nice contradicting yourself

you are right in terms of it lowers capital requirement but it also increases liquidity, and generally companies only do splits when the company is doing well as Jessi stated, and there is a psychological factor as I've stated as well

it's definitely not just retail investors with <$3.5k that's going to be driving amazon stock growth post-split

This post was edited by badasses on Mar 27 2022 01:41pm

stock splits dont affect the value of companies

for example, if a company is worth $100m and has 1m shares thats $100 per share. A 100/1 split will make there go from 1m shares to 100m shares and the the shares will go from $100 to $1 per share (this is not from buying or selling and this will happen automatically) meaning in both the before and after the cost of the company will remain the same.


This post was edited by FrenchVanilla on Mar 29 2022 02:53am