Part 3/8:
Accessibility: By lowering the per-share price, splits can make shares more attractive and accessible to everyday investors. This sentiment was articulated by Apple’s CEO Tim Cook during their seven-for-one split initiative, aimed at broadening their investor base.
Liquidity: It was argued that stock splits could potentially increase liquidity, narrowing bid-ask spreads. However, Lewis noted skepticism about this rationale, especially considering the modern trading landscape dominated by algorithms.