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If you held shares prior to the split, you would own shares after the split.
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· A stock split is a corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the southshorechorale.com://southshorechorale.com EFFECTS OF STOCK SPLIT Introduction The purpose of this research paper is information retrieval regarding stock split practice in a modern stock market, its major reasons and valuation effects on the company's financial position.
EFFECTS OF STOCK SPLIT Introduction The purpose of this research paper is information retrieval regarding stock split practice in a modern stock market, its major reasons and valuation effects on the company's financial southshorechorale.com://southshorechorale.com The upbeat atmosphere of a stock split often pulls in a large number of new buyers.
This influx of traders and investors can lift the stock price higher, giving exceptional gains for those positioned in the stock prior to the split stock southshorechorale.com · We observe significant post-split excess returns of % in the first year and % in the first three years for a sample of 1, two-for-one stock splits.
These excess returns follow an announcement return of %, indicating that the market underreacts to split southshorechorale.com://southshorechorale.com?abstract_id=Download