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Strategies & Market Trends : Three Amigos Stock Thread

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To: milesofstyles who wrote (5527)	6/2/1998 6:25:00 PM
From: Sergio H	Read Replies (2) of 29382

2 for 1 splits are usually announced by Companies whose stock price has been going up. It's a bullish signal because they demonstrate that the company believes that their stock price will continue to rise. The split allows more investors to establish positions in the stock and it is not dilutive since the per share ratios will be the same pre and post split. I agree with your statement that the fundamentals have not changed, but the perception of the fundamentals is enhanced by the split. Great historical examples, off the top of my mind are Disney and Iomega. Would love to see the efficient market study that you mentioned, or the highlights. I'm always interested in learning. Sergio

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