3 ms·
It also allows options trading by retail investors (options are traded in 100 share tranches, which for GOOG or AMZN right now means your minimum option trade i
by joshuamorton 5y ago
It also allows options trading by retail investors (options are traded in 100 share tranches, which for GOOG or AMZN right now means your minimum option trade is on an underlying value of ~$250K, meaning a 5-10% swing is... significant.). Splits make options trading more accessible to retail investors by dropping the minimum risk 10-20x which also might cause a natural demand increase.
> Obviously there has never been a correlation there and even less so now with the wide availability of fractional shares.
Splits have historically caused price bumps, so I think this isn't true.