Part 5/7:
Lewis highlights a notable trend whereby the number of companies willing to split their stocks has diminished. In 1997, more than 100 companies in the S&P 500 opted for splits, whereas by 2016, that figure plummeted to just seven. This shift can be attributed to the growing understanding among executives that stock splits offer little more than temporary cosmetic changes and often don’t significantly influence long-term market performance.
Furthermore, the emergence of brokerages providing fractional shares has eased access for smaller investors, rendering stock splits less critical for acquiring ownership in companies.