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To: Zen Dollar Round who wrote (170652)	6/9/2014 10:01:16 AM
From: Ryan Bartholomew	Respond to of 213173

Right, but the flaw in such studies is the selective bias. If the pool of companies examined are those ripe for stock splits, they're inherently companies that are already doing well. You'd need to back out expected performance with the same fundamentals and no split to determine that impact of the split per se. This is impossible to do; the best you can do is extrapolate.

To: Zen Dollar Round who wrote (170652)	6/9/2014 3:07:38 PM
From: Stock Puppy	Read Replies (2) \| Respond to of 213173

Critics would argue that a stock split is a non-event. They're convinced that a split is simply an accounting function with no relationship to stock performance. In fact, they think investors are "foolish" to believe there is any money to made from something as unimportant as a stock split. So who's right?" Sigh. Given that the stock market is, for a large part, psychological, these discussions are an awful lot like those heated discussions a few decades and centuries ago about how many angels fit on the head of a pin. Or somewhat more current: It's like the Oracle and the Architect (Matrix series - esp. Matrix Revolutions ending) arguing. Mathematically it's correct - no difference. Psychologically is what matters since it influences human reaction. 1+1 = 2 but when the one's are perceived as very large ones, then 1.xx + 1.xx = 3 And, also demand goes up somewhat, especially for the small investor. It's a lot easier to poke away $100 at a time then $600. For those of you who think otherwise, I congratulate you on growing up in nice stable and safe well to do environment. For those of you who have seen the movie "Chicken Run" - remember the scene where the guyy says "It's all in me head"