Do stock splits matter if you can just buy fractional shares?

Question

I understand that stock splits are meant to make stocks more affordable for more investors but if platforms allow fractional shares like Robinhood, does this matter as much? If theoretically more platforms supported fractional shares, would stock splits matter less and less?

In: Economics

Answer 1

Options contracts only deal in lots of 100 full shares. While individual investors don’t often dabble in options (most shouldn’t), options trading is huge in the institutional investor world.