Analysts said there are several reasons (https://www.cnbc.com/2019/07/16/alibaba-stock-split-ahead-of-reported-hong-kong-ipo.html) companies do stock splits
"The proposed move will have an impact on the minds of average investors, who otherwise are waiting in the fringes," an analyst with a leading bank brokerage house said about the stock splits
so far announced in the local bourse.
M2 EQUITYBITES-July 18, 2014-iGo gets FINRA approval of reverse/forward stock splits
TELECOMWORLDWIRE-July 18, 2014-iGo gets FINRA approval of reverse/forward stock splits
Arbel et al., (1993), predominantly in the context of stock splits
have proposed the Neglected Firm Hypothesis.
Since 1996, when there were 643 stock splits
, totals have trended downward, reports Thomson Financial Securities Data.
, buybacks and dividend increases all send a message to the market, one that is often good to heed.
Empirical evidence shows real economic effects associated with stock splits
. Grinblatt, Masulis and Titman (1984) document significantly positive abnormal returns of about 3.3 percent in the two days around a split announcement for a sample of 244 stocks having no other confounding announcement effects.
At the opening of the market on 12 August 2013, the company's common stock will trade under a new CUSIP number (74926T 201) and its ticker symbol (RBCL) will be temporarily appended with a "D" for a period of 20 days to indicate the stock splits
Lamoureux and Poon (1987) examine 41 stock splits
during the period 1975 to 1985 and control for other contaminating announcements.
Perumal Aamal Company, one of the most diversified conglomerates in Qatar, is considering a stock split
, whereby each share will be subdivided into 10 shares, a move that ought to make the scrips attractive to retail investors and enhance liquidity.