As one example, Alphabet ( GOOGL ) underwent a 20-for-1 stock split in July 2022 that effectively reduced its share price from $2,300 to $115. At the time, instead of having to pay $230,000 for 100 shares, investors now only had to spend $11,500 (i.e., 100 x $115). A year later, GOOGL stock is hovering around $130, but investors can more easily buy and sell its call options and put options.