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
there is a mental aspect to stock pricing as well……there are a lot of people that thing 1100/share is “too high” but 100/share is perfect…..nevermind the pie has been cut into 10x as many pieces now. behavioral finances is rapidly helping to explain many things left fuzzy by traditional economics
fractional shares are still not widely available; but they certainly do help solve the problems otherwise fixed by splits
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