Splitting up: What happens when a company splits their stock?

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Issue Date
2021-04-02
Embargo End Date
Authors
McTigue, Brian
Advisor
Cheng, Jen-Chi
Citation

McTigue, B. 2021. Splitting up: What happens when a company splits their stock? -- In Proceedings: 17th Annual Symposium on Graduate Research and Scholarly Projects. Wichita, KS: Wichita State University

Abstract

Stock splits have evolved over the past decades as the methods of investing have changed. These changes in methods revolve mostly around how individuals buy stock and how the stock purchasing process plays out. Because of this evolution, companies now have different reasons to split than they did before which causes them to reevaluate when they need to split their stock or if they need to split their stock. These differing reasons then trickle down to investors and how they view and evaluate companies. Some companies that may have been before viewed as potential candidates to split may lose this status and therefore be invested in differently. The goal of this paper will be to find how these shifts in methods of investing have affected what happens when a company splits its stock and to figure out how investors can take advantage of these tendencies.

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Description
Presented to the 17th Annual Symposium on Graduate Research and Scholarly Projects (GRASP) held online, Wichita State University, April 2, 2021.
Research completed in the Department of Economics, W. Frank Barton School of Business
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