After Alphabet, Apple and Tesla, now Amazon!

What does this mean for the stock market?

Based on The Wall Street Journal research, traditionally Stocks in the USA500 rise 5% in the year following share splits, including 2.5% immediately following the announcement according to research from Nasdaq Inc. on splits between 2012 and 2018.

This year things might be slightly different, since outsized reactions have been seen in the stock market due to external factors including a psychological component during a dismal year full of uncertainties and risks.

Generally however a stock split does not affect the broader stock market, with the Dow Jones Industrial Average being an exception since its value is not weighted by its components’ market value, but by its components’ share price value since it is a price-weighted index. The higher the share price, the bigger the influence that stock has over the Dow’s daily price swings.


Click here to access our Economic Calendar

Andria Pichidi

Market Analyst

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distribution.