Stock splits have become less common over recent years; however, they still generate significant interest due to psychological effects on investors and perceived liquidity of shares.
The purpose of a stock split is to increase the number of shares available while keeping the overall market value consistent, allowing more investors to buy in.
Notably, stock splits can enhance a company's share liquidity and potentially attract new investors who may perceive a lower price point as more approachable.
Despite a stock split not changing the underlying value of a company, it can create renewed interest and trading volumes, as seen with Nvidia's recent split.
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